©BRIGHTSTARS EXAM SOLUTIONS
11/16/2024 10:16 AM
MBU 1110 Test 3 Review Questions With
Correct Answers
Personal Manager's salary - answer✔earns 15-20% on average on gross earnings,
Personal Manager's tasks - answer✔1. help with major business decisions
2. help with creative process
3. promote career by hyping artist
4. assembling and heading professional team
5. coordinating concert tour with promoters
6. staying on label to maximize their efforts and have them treat artist as a priority
7. buffer between artist and outside world
8. Can charge travel and other expenses back to the artist
Personal Manager's Term - answer✔1. can be for 3 to 5 years, norm is 5 years.
2. sometimes term is based on album cycle
Power Of Attorney - answer✔An agreement with another person where that person can sign
legal and binding documents on your behalf
Sunset Clause - answer✔outlines the terms of how a manager is paid for things they were a
part of during the term, after the term has ended and outlines the point at which the old
manager is no longer paid
Key Man Clause - answer✔If your contact leaves the management company, you have the right
to go with them or exit your contract with the management company
Business Manager - answer✔person on the team who handles the money
- doesn't have to be a CPA (certified)
1|Page
, ©BRIGHTSTARS EXAM SOLUTIONS
11/16/2024 10:16 AM
- not wise to use family member
Business Manager - answer✔5% gross income is a normal rate or bigger acts want hourly rate
Attorney's Salary - answer✔Typical rate anywhere between 150 to 600 per hour depending on
clout of attorney.
Attorney - answer✔Handles contracts, helps structure deals, negotiate deals trademarks or
licenses
Retainer - answer✔set monthly fee to keep a laywer at your disposal. Kind of like pre-paying for
future services.
Value Billing - answer✔fee based on size of the deal
Conflict of Interest - answer✔Attorney cannot negotiate a deal on behalf of 2 of his own clients
against each other. He either has to pick a side or let each party get their own lawyer.
Agents job - answer✔deals with promoters in booking live concerts and personal appearances;
Regulated by the unions;
Agents salary and term - answer✔typically paid a 10% commission on events; term usually 1
year
Major labels - answer✔Warner Music Group (only U.S. based), Sony Entertainment Group,
Universal Music Group
Record business structure - answer✔Labels fund recordings; Artists turn in albums; Label gives
record to distributor; Distributor sells physical records wholesale to store/dealers; Label
promotes, advertises, and markets album
Record Label President - answer✔oversees all divisions
Record Label Division: A&R (Artist and Repertoire) - answer✔find talent and work creatively
with artists
Record Label Division: Sales - answer✔get albums in stores and sites
Record Label Division: Marketing - answer✔Advertising, Publicity, Artwork, Swag, Promos
Record Label Division: Promotion - answer✔getting singles played on radio, deal with Program
Directors at Radio
Program Directors - answer✔makes decision on what is played on his station
2|Page
11/16/2024 10:16 AM
MBU 1110 Test 3 Review Questions With
Correct Answers
Personal Manager's salary - answer✔earns 15-20% on average on gross earnings,
Personal Manager's tasks - answer✔1. help with major business decisions
2. help with creative process
3. promote career by hyping artist
4. assembling and heading professional team
5. coordinating concert tour with promoters
6. staying on label to maximize their efforts and have them treat artist as a priority
7. buffer between artist and outside world
8. Can charge travel and other expenses back to the artist
Personal Manager's Term - answer✔1. can be for 3 to 5 years, norm is 5 years.
2. sometimes term is based on album cycle
Power Of Attorney - answer✔An agreement with another person where that person can sign
legal and binding documents on your behalf
Sunset Clause - answer✔outlines the terms of how a manager is paid for things they were a
part of during the term, after the term has ended and outlines the point at which the old
manager is no longer paid
Key Man Clause - answer✔If your contact leaves the management company, you have the right
to go with them or exit your contract with the management company
Business Manager - answer✔person on the team who handles the money
- doesn't have to be a CPA (certified)
1|Page
, ©BRIGHTSTARS EXAM SOLUTIONS
11/16/2024 10:16 AM
- not wise to use family member
Business Manager - answer✔5% gross income is a normal rate or bigger acts want hourly rate
Attorney's Salary - answer✔Typical rate anywhere between 150 to 600 per hour depending on
clout of attorney.
Attorney - answer✔Handles contracts, helps structure deals, negotiate deals trademarks or
licenses
Retainer - answer✔set monthly fee to keep a laywer at your disposal. Kind of like pre-paying for
future services.
Value Billing - answer✔fee based on size of the deal
Conflict of Interest - answer✔Attorney cannot negotiate a deal on behalf of 2 of his own clients
against each other. He either has to pick a side or let each party get their own lawyer.
Agents job - answer✔deals with promoters in booking live concerts and personal appearances;
Regulated by the unions;
Agents salary and term - answer✔typically paid a 10% commission on events; term usually 1
year
Major labels - answer✔Warner Music Group (only U.S. based), Sony Entertainment Group,
Universal Music Group
Record business structure - answer✔Labels fund recordings; Artists turn in albums; Label gives
record to distributor; Distributor sells physical records wholesale to store/dealers; Label
promotes, advertises, and markets album
Record Label President - answer✔oversees all divisions
Record Label Division: A&R (Artist and Repertoire) - answer✔find talent and work creatively
with artists
Record Label Division: Sales - answer✔get albums in stores and sites
Record Label Division: Marketing - answer✔Advertising, Publicity, Artwork, Swag, Promos
Record Label Division: Promotion - answer✔getting singles played on radio, deal with Program
Directors at Radio
Program Directors - answer✔makes decision on what is played on his station
2|Page
