Music Business Procedure And Knowledge Quiz #2
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The four major record companies are: EMI, Sony, Universal, and ___________.
About This Quiz
Music Business Procedure And Knowledge Quiz #2 assesses understanding of market dynamics, branding, and market share in the music industry. It evaluates key skills in identifying consumer needs, differentiating brands, and understanding competitive standings of major music companies.
Quiz Preview
- 2.
Putting music up for download on iTunes or streaming files on Pandora is considered digital distribution/sales.
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True
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False
Correct Answer
A. TrueExplanation
This statement is true because both putting music up for download on iTunes and streaming files on Pandora involve the distribution and sale of digital music. iTunes allows users to purchase and download music digitally, while Pandora allows users to stream music online. Both methods involve the distribution and sale of music in a digital format, making the statement true.Rate this question:
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- 3.
The four major record companies are: Warner, EMI, Sony, and _________.
Correct Answer
UniversalExplanation
The question asks for the missing major record company to complete the list. The correct answer is "Universal." Universal Music Group is one of the four major record companies, along with Warner Music Group, EMI Group, and Sony Music Entertainment. These companies dominate the global music industry and have a significant influence on the production, distribution, and promotion of music worldwide.Rate this question:
- 4.
Each record company is made up of three components:
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Distribution companies
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Record labels
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Publishing company
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All of the above
Correct Answer
A. All of the aboveExplanation
The correct answer is "All of the above" because each record company consists of distribution companies, record labels, and a publishing company. These three components work together to handle different aspects of the music industry. Distribution companies are responsible for distributing the music to various platforms and retailers. Record labels are in charge of signing and promoting artists, as well as producing and marketing their music. The publishing company deals with the copyrights and licensing of the music. Therefore, all three components are necessary for a complete record company.Rate this question:
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- 5.
Artists and Repertoire (A&R) is the individual at a record company that finds talent and deals with all the creative elements of making records.
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True
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False
Correct Answer
A. TrueExplanation
Artists and Repertoire (A&R) is indeed the individual at a record company responsible for finding talent and handling all the creative aspects of making records. They play a crucial role in scouting and signing new artists, overseeing the production process, and ensuring the artistic direction aligns with the company's vision. A&R professionals are involved in selecting songs, working with songwriters and producers, and providing guidance to artists throughout the recording process. Their expertise and insights contribute to the success and quality of the records released by the company.Rate this question:
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- 6.
_______ is money paid to an artist for sales of their music.
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Royalty
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License
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Digital Distribution
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Recoupment
Correct Answer
A. RoyaltyExplanation
Royalty is the correct answer because it refers to the money paid to an artist for sales of their music. When an artist's music is sold, they receive a percentage of the revenue generated, which is known as royalty. This payment is a form of compensation for their creative work and serves as a way to reward and incentivize artists for their contributions to the music industry.Rate this question:
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- 7.
The content of a record company is its record labels and the master recordings that the label owns.
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True
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False
Correct Answer
A. TrueExplanation
A record company's content refers to its record labels and the master recordings that the label owns. This means that the record company's value lies in the ownership and management of these labels and recordings. Therefore, the given statement that the content of a record company is its record labels and master recordings is true.Rate this question:
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- 8.
Major labels have access to huge amounts of capital.
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True
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False
Correct Answer
A. TrueExplanation
Major labels have access to huge amounts of capital because they are backed by large corporations or investors who are willing to invest significant amounts of money into their operations. This allows major labels to fund expensive recording sessions, marketing campaigns, and other promotional activities that can help launch and promote an artist's career. Additionally, major labels often have established relationships with distribution channels, which further enhances their ability to generate revenue and access capital.Rate this question:
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- 9.
Royalty can be a negotiated percentage or a fixed amount.
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True
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False
Correct Answer
A. TrueExplanation
Royalty refers to the payment made to the owner of a property or intellectual property for the use or sale of that property. It can be calculated as a negotiated percentage of the revenue generated from the property or as a fixed amount. This means that the amount paid as royalty can be based on a percentage of the sales or profits, or it can be a predetermined fixed sum. Therefore, the statement that "Royalty can be a negotiated percentage or a fixed amount" is true.Rate this question:
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- 10.
Indie labels take more creative risks than Major labels. They are the "tastemakers" that set the trends.
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True
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False
Correct Answer
A. TrueExplanation
Indie labels are known for their willingness to take creative risks and explore new and unconventional sounds and styles. Unlike major labels, which often prioritize commercial success and mainstream appeal, indie labels are more focused on artistic integrity and pushing boundaries. They are often seen as the "tastemakers" of the music industry, setting trends and influencing popular culture. Therefore, it can be concluded that indie labels do indeed take more creative risks than major labels, making the answer "True."Rate this question:
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- 11.
A ______ is the final version of a track or album that is turned into the record company that goes into the vaults as the final asset that the record company owns.
Correct Answer
MasterExplanation
The term "master" refers to the final version of a track or album that is submitted to the record company. This version is considered the ultimate asset owned by the record company and is stored in their vaults. The master represents the completed and polished version of the music, ready for distribution and release.Rate this question:
- 12.
An _________ is a series of payments from the record label to the artist that is recoupable against artist record royalties.
Correct Answer
advanceExplanation
An advance is a series of payments made by the record label to the artist. These payments are recoupable, meaning that they can be deducted from the artist's record royalties. In other words, the artist will need to repay the advance through their future earnings from record sales. This allows the record label to provide financial support to the artist upfront, while also ensuring that they can recoup their investment before the artist starts earning significant royalties.Rate this question:
- 13.
Record labels advance money for:
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Recording
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Tour Support
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Recoupable marketing services
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All of the above
Correct Answer
A. All of the aboveExplanation
Record labels advance money for various purposes such as recording, tour support, and recoupable marketing services. When an artist signs with a record label, they often receive an advance, which is an upfront payment to cover the costs associated with recording their music. This includes studio time, hiring musicians, and production expenses. Additionally, record labels may provide financial support for the artist's tours, covering expenses like travel, accommodation, and promotion. Lastly, record labels invest in marketing services to promote the artist's music, and these costs are recoupable, meaning they are deducted from the artist's future earnings. Therefore, the correct answer is "All of the above."Rate this question:
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- 14.
Major labels act as a distributor for many independent labels.
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True
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False
Correct Answer
A. TrueExplanation
Major labels often have a distribution arm that allows them to distribute music not only from their own artists but also from independent labels. This means that independent labels can benefit from the major label's established distribution network and reach a wider audience. Acting as a distributor for independent labels also allows major labels to diversify their catalog and potentially discover new talent. Therefore, the statement that major labels act as a distributor for many independent labels is true.Rate this question:
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- 15.
Caroline/EMI Label Services is the indie distributor for EMI.
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True
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False
Correct Answer
A. TrueExplanation
Caroline/EMI Label Services being the indie distributor for EMI means that they are responsible for distributing EMI's music to independent record stores and online platforms. This implies that Caroline/EMI Label Services works closely with EMI and handles the distribution process on their behalf, making the statement true.Rate this question:
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- 16.
Record companies take part in the ________ of recorded music.
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Sales
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Production
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Creation
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Manufacturing
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All of the above
Correct Answer
A. All of the aboveExplanation
Record companies are involved in various aspects of the recorded music industry. They are responsible for sales, as they distribute and sell the recorded music to consumers. They also play a role in production, overseeing the recording, mixing, and mastering processes. Record companies are involved in the creation of music by signing and developing artists, and they also handle the manufacturing of physical copies of the music, such as CDs and vinyl records. Therefore, all of the options listed - sales, production, creation, and manufacturing - are activities in which record companies participate.Rate this question:
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- 17.
Booking agents earn their money by taking a percentage from the artists live performance income.
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True
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False
Correct Answer
A. TrueExplanation
Booking agents earn their money by taking a percentage from the artists' live performance income. This means that when an artist performs at a concert, the booking agent receives a portion of the money earned from ticket sales or other sources of income related to the live performance. This arrangement incentivizes booking agents to secure high-paying gigs for their clients and ensures that they are financially invested in the success of the artist's live performances.Rate this question:
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- 18.
The term used to describe the process in which a record company recovers the money they have advanced to a recording artist is...
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Royalty
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License
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Digital Distribution
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Recoupment
Correct Answer
A. RecoupmentExplanation
Recoupment is the term used to describe the process in which a record company recovers the money they have advanced to a recording artist. This typically happens by deducting the artist's earnings from album sales, merchandise, or other revenue streams until the initial investment is fully recovered. It is an essential aspect of the music industry, ensuring that record labels can recoup their expenses and make a profit from their investments in artists.Rate this question:
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- 19.
A ___________ is a recording deal in which the record label receives money from not just record sales, but also touring income, merchandise income, etc...
Correct Answer
360 dealExplanation
A 360 deal is a recording contract where the record label receives a percentage of not only the artist's record sales, but also their income from touring, merchandise, and other sources. This type of deal allows the record label to have a financial stake in all aspects of the artist's career, not just their recorded music. It is a way for record labels to maximize their profits and ensure a more comprehensive partnership with the artist.Rate this question:
- 20.
Traditional record deals give the record company ownership of any recordings made by an artist.
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True
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False
Correct Answer
A. TrueExplanation
Traditional record deals typically involve the record company owning the rights to any recordings made by an artist. This means that the record company has control over the distribution, promotion, and monetization of the artist's music. The artist may receive royalties or a percentage of the profits, but ultimately, the ownership and control lie with the record company. This arrangement has been the standard in the music industry for many years, although there has been a shift towards more artist-friendly deals in recent times.Rate this question:
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- 21.
The traditional chain of music distribution is: Artist > Record Label > Record Company/Distributor > Retail > Consumer
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True
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False
Correct Answer
A. TrueExplanation
The traditional chain of music distribution involves the artist creating the music, then signing with a record label. The record label then works with a record company or distributor to distribute the music to retail stores. Finally, the consumer purchases the music from the retail store. This process has been the standard way of distributing music for many years.Rate this question:
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- 22.
This identifies the wants and needs of the consumer/customer:
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Branding
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Marketing
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Market Share
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Monetization
Correct Answer
A. MarketingExplanation
Marketing is the correct answer because it involves identifying and understanding the wants and needs of the consumer or customer. Marketing strategies are designed to analyze consumer behavior, conduct market research, and develop products or services that meet the demands of the target audience. Through various marketing techniques, businesses aim to effectively communicate and promote their offerings to attract and satisfy customers.Rate this question:
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- 23.
____ holds 10% of the current market share.
Correct Answer
EMIExplanation
EMI holds 10% of the current market share.Rate this question:
- 24.
___________ is a company's percentage share of total sales within a given market.
Correct Answer
Market ShareExplanation
Market share refers to the percentage of total sales that a company has within a specific market. It is a measure of a company's success and competitiveness in relation to its competitors. By calculating market share, companies can assess their position in the market and evaluate their performance. It is an important metric for businesses to track as it provides insights into their market presence and helps in making strategic decisions to improve their market position.Rate this question:
- 25.
The publishing companies operate independently from the distribution and record labels.
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True
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False
Correct Answer
A. TrueExplanation
This statement suggests that publishing companies function separately from distribution and record labels. In the music industry, publishing companies are responsible for managing and licensing the rights to songs, while distribution companies handle the physical or digital distribution of music, and record labels oversee the production and promotion of artists and their music. Therefore, it is true that publishing companies operate independently from distribution and record labels.Rate this question:
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- 26.
RIAA stands for ___________.
Correct Answer
Recording Industry Association of AmericaExplanation
The correct answer is "Recording Industry Association of America." The RIAA is an organization that represents the recording industry in the United States. They work to protect the rights of music creators, promote the value of music, and enforce copyright laws. They also certify and award certifications for albums and singles based on their sales and streaming numbers. The RIAA plays a significant role in the music industry and is responsible for many initiatives and actions to support and advocate for the recording industry.Rate this question:
- 27.
Distributing CDs or records would be considered digital distribution/sales.
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True
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False
Correct Answer
A. FalseExplanation
Distributing CDs or records would not be considered digital distribution/sales because CDs and records are physical formats, not digital formats. Digital distribution/sales refers to the distribution or sale of digital files, such as music or movies, through online platforms or streaming services.Rate this question:
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- 28.
The process of converting goods or services into money is known as __________.
Correct Answer
MonetizationExplanation
Monetization refers to the process of converting goods or services into money. This can be done through various means such as selling products, offering services for a fee, or generating revenue through advertising. Monetization is an essential aspect of any business or economic system as it allows for the exchange of value and facilitates economic growth.Rate this question:
- 29.
Only __% (or less) of records "break even"
Correct Answer
20Explanation
This answer suggests that only 20% or less of the records achieve a break-even point. This means that the majority of the records do not generate enough revenue to cover their costs. It indicates that a significant portion of the records may be operating at a loss or not generating any profit.Rate this question:
- 30.
____ holds 26% of the current market share.
Correct Answer
SonyExplanation
Sony holds 26% of the current market share.Rate this question:
- 31.
The group that represents American record companies, awards gold and platinum status to songs and albums, and is infamous for filing lawsuits against copyright infringing music downloaders is known as the _____
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RIAA
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NARAS
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A&R
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CIA
Correct Answer
A. RIAAExplanation
The correct answer is RIAA. The Recording Industry Association of America (RIAA) is the group that represents American record companies. They are responsible for awarding gold and platinum status to songs and albums based on their sales and streaming numbers. The RIAA is also notorious for filing lawsuits against individuals who illegally download copyrighted music.Rate this question:
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- 32.
Mechanical royalties is not split up amongst co-writers.
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True
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False
Correct Answer
A. FalseExplanation
Mechanical royalties are typically split among co-writers based on their respective contributions to the song. This means that if multiple songwriters collaborated on a song, they will generally share the mechanical royalties in proportion to their individual contributions. Therefore, the statement that mechanical royalties are not split up amongst co-writers is false.Rate this question:
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- 33.
All of the following are owned by publicly held corporations except:
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Universal
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Sony
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EMI
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Warner
Correct Answer
A. EMIExplanation
EMI is the correct answer because it is not owned by a publicly held corporation. Universal, Sony, and Warner are all examples of publicly held corporations that are involved in the music industry. EMI, on the other hand, is a British music company that was once publicly traded but is now privately owned. Therefore, it is not owned by a publicly held corporation.Rate this question:
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- 34.
_______ is owned by a private equity firm and their only source of income is music.
Correct Answer
EMIExplanation
EMI is owned by a private equity firm and their only source of income is music. This suggests that EMI is a company that specializes in the music industry and is owned by a private equity firm, meaning it is not publicly traded. The fact that their only source of income is music implies that EMI generates revenue solely from activities related to music, such as music sales, licensing, and publishing.Rate this question:
- 35.
You are not allowed to sign a recording deal with one company and a publishing deal with another company.
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True
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False
Correct Answer
A. FalseExplanation
This statement is false because it is possible for an artist to sign a recording deal with one company and a publishing deal with another company. In the music industry, recording deals are focused on the production and distribution of the artist's recorded music, while publishing deals are centered around the rights to the artist's compositions and the collection of royalties. It is common for artists to have separate agreements with different companies for these two aspects of their music career.Rate this question:
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- 36.
______________ are individuals that book shows/tours for the artist and earn their money by taking a percentage from the artists live performance income.
Correct Answer
booking agentsExplanation
Booking agents are individuals who work on behalf of artists to secure shows and tours. They play a crucial role in the artist's career by negotiating contracts, coordinating logistics, and promoting the live performances. Booking agents earn their income by taking a percentage from the artist's live performance earnings. This arrangement incentivizes them to secure as many high-paying gigs as possible for the artist, as their income is directly tied to the artist's success in the live music industry.Rate this question:
- 37.
A _______ is any guest that plays on a recording who is not an artist contracted to the record company.
Correct Answer
Side ArtistExplanation
A side artist refers to any guest who performs on a recording but is not under contract with the record company. This means that they are not officially signed or affiliated with the record label and are instead brought in as a guest or session musician. They may contribute to the recording by playing an instrument or providing additional vocals, but they are not considered a primary artist or part of the main lineup.Rate this question:
- 38.
Record labels provide _________ for: Recording, tour support, and recoupable marketing services.
Correct Answer
advancesExplanation
Record labels provide advances for recording, tour support, and recoupable marketing services. Advances are upfront payments given to artists by record labels to cover their expenses related to recording, touring, and marketing. These advances are usually recoupable, meaning that the label will deduct the amount from the artist's future earnings. This financial support allows artists to focus on their music and career without worrying about the immediate financial burden.Rate this question:
- 39.
Each major distribution company also has distributed labels throughout a secondary ______ distributor.
Correct Answer
indieExplanation
The correct answer is "indie" because the sentence suggests that each major distribution company has distributed labels through a secondary distributor. The term "indie" is short for independent, which typically refers to small, non-mainstream companies or artists. Therefore, in this context, the word "indie" would be appropriate to describe the secondary distributor as an independent or non-mainstream entity.Rate this question:
- 40.
A recoupable advance an artist receives from the record company that allows them to go on tour without losing money is known as _________.
Correct Answer
tour supportExplanation
A recoupable advance is a sum of money given to an artist by the record company, which they can use to fund their tour expenses. This advance is called "tour support" because it allows the artist to go on tour without incurring financial losses. It helps cover costs such as travel, accommodation, equipment, and other expenses associated with touring. The artist is expected to repay this advance from their future earnings, typically through album sales or concert revenues.Rate this question:
- 41.
The three major components of a record company are: Distribution companies, Publishing company, and _________.
Correct Answer
Record labelsExplanation
The three major components of a record company are: Distribution companies, Publishing company, and record labels. Record labels play a crucial role in the music industry as they are responsible for signing and promoting artists, producing and distributing music recordings, and managing the overall business aspect of the artist's career. They provide the necessary resources and support to artists, helping them reach a wider audience and achieve commercial success. Without record labels, the music industry would lack the infrastructure and expertise required to develop and market artists effectively.Rate this question:
- 42.
All four of the major labels are owned by publicly held corporations.
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True
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False
Correct Answer
A. FalseExplanation
The statement is false because not all four of the major labels are owned by publicly held corporations. While some of the major labels may be owned by publicly held corporations, it is not true for all of them. Therefore, the correct answer is false.Rate this question:
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- 43.
This is a means of a distinguishing the goods and services of one business from that of their competitors:
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Branding
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Marketing
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Market Share
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Monetization
Correct Answer
A. BrandingExplanation
Branding is the process of creating a unique and recognizable identity for a business or its products/services. It involves the use of specific elements such as a name, logo, design, and messaging to differentiate the business from its competitors. By establishing a strong brand, businesses can effectively communicate their values, establish trust, and create a loyal customer base. This differentiation helps consumers identify and choose the products/services of a particular business over others in the market.Rate this question:
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- 44.
________ is media exposure or information disseminated through various media outlets to attract public notice.
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Publicity
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Public Relations (or PR)
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Monetization
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Demographic
Correct Answer
A. PublicityExplanation
Publicity refers to media exposure or information disseminated through various media outlets to attract public notice. It involves creating awareness and generating interest in a product, service, or organization by sharing news stories, press releases, or other promotional content through media channels such as newspapers, television, radio, and online platforms. Publicity aims to capture the attention of the target audience and create a positive image or reputation for the entity being promoted. It is a strategic communication tool used to increase visibility and enhance public perception.Rate this question:
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- 45.
________ is the group that puts on the Grammy Awards.
Correct Answer
NARASExplanation
NARAS, which stands for the National Academy of Recording Arts and Sciences, is the group responsible for organizing and hosting the Grammy Awards. They are responsible for selecting the nominees and winners in various music categories and putting together the annual awards ceremony. NARAS is made up of music industry professionals, including musicians, producers, engineers, and other recording professionals, who vote on the awards and contribute to the overall mission of promoting and honoring excellence in the recording arts.Rate this question:
- 46.
_________ are the methods and activities employed to establish and promote a favorable relationship with the public.
Correct Answer
Public RelationsExplanation
Public Relations refers to the methods and activities used to create and maintain a positive relationship with the public. It involves managing communication, building trust, and promoting a favorable image of an organization or individual. Public Relations professionals use various strategies such as media relations, social media management, event planning, and crisis management to establish and enhance the reputation and public perception of their clients. Through effective Public Relations, organizations can cultivate goodwill, manage their reputation, and gain support from the public.Rate this question:
- 47.
A _______ is necessary to retain ownership of something, such as music, and can allow another entity to use it for a defined period of time.
Correct Answer
LicenseExplanation
A license is a legal document or agreement that grants permission to an individual or entity to use or retain ownership of something, such as music. It allows another entity to use the licensed material for a specific period of time, while the original owner retains ownership rights. This ensures that the owner maintains control over their intellectual property and can regulate its usage. Licensing agreements are commonly used in various industries, including music, software, and intellectual property.Rate this question:
- 48.
A corporation or group engaged in the creation, production, manufacturing, distribution, marketing, and sales of recorded music is known as a _____________.
Correct Answer
Record CompanyExplanation
A corporation or group engaged in the creation, production, manufacturing, distribution, marketing, and sales of recorded music is known as a record company. This term refers to the business entity responsible for various aspects of the music industry, including signing and promoting artists, producing and distributing albums, and managing the sales and marketing of recorded music. Record companies play a crucial role in the music industry by facilitating the production and distribution of music to the public.Rate this question:
- 49.
_________ are the study of population segments to identify consumer-buying habits.
Correct Answer
DemographicsExplanation
Demographics refers to the study of population segments, including factors such as age, gender, income, education, and occupation. By analyzing these characteristics, marketers can gain insights into consumer-buying habits and preferences. Understanding demographics helps businesses tailor their products, services, and marketing strategies to specific target audiences, increasing the effectiveness of their campaigns and ultimately driving sales.Rate this question:
Quiz Review Timeline (Updated): Feb 14, 2023 +
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Current Version
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Feb 14, 2023Quiz Edited by
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Oct 20, 2010Quiz Created by
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