VISC 205 Quizzes 8-19 (8-15)

When taking on a new assignment, it is the freelance or creative person's obligation to define the budget, the schedule, and the results desired for the job.

False

When you are an owner or principal, then by the very nature of your job you need to insist that everything be done your way.

False

When you buy lunch for a client, Uncle Sam pays the whole tab because business lunches are completely tax deductible.

False

Whenever you send out business mailers, you should request a response from the recipients.

False

With every telemarketing call to a potential client, creative freelancers should take the initiative to try to actually sell their services.

False

You do not need to check the spelling of the names of potential clients, or their job titles or their addresses if these were purchased or obtained from the mailing list of a reputable organization.

False

You should avoid calling potential clients on Mondays, but the other weekdays are all okay for calling.

False

You should not try to impress a potential client with how much you know about his/her company since it will seem artificial or that you are trying to put on airs.

False

A company's standards and procedures include the style and format of correspondence, the telephone greeting to be used, which vendors and suppliers can be used, and how concepts are to be prepared and presented to clients.

True

A good client provides a week or more to do the work, depending on the job.

True

A good solution to the problem of too much business is to farm out your more routine work to a freelance.

True

A purchase order allocates payment against a specific budget account.

True

A threat to report nonpayment to Dun & Bradstreet carries a good deal of weight because D & B is the principal compiler of credit histories on businesses.

True

According to guidelines established by the IRS, the cost for expensive, long-life items necessary for conducting business must be prorated.

True

According to the IRS's "Rule of Four," operating expenses must be for immediate service or for items with a short effective life.

True

After giving a portfolio presentation, it is a good idea to leave behind a package of pertinent materials that you had previously prepared for the client.

True

After you register with a temp agency, you can still reject any job a temporary employment firm/temp agency directs your way.

True

An employee's lifestyle and personality are only important to the extent that they affect the employee's work or the employee's ability to relate to clients and other employees.

True

An estimate is a flexible price based upon flexible conditions.

True

Any formal meeting of three or more employees should be authorized by the company's principal or creative director.

True

As a business owner or freelance you should have readily available for potential and current clients a sheet that summarizes billing procedures and how you price your services.

True

As a general rule, you should not hire a telemarketing firm to do your telemarketing because few firms would know you well enough to answer all the questions that could be asked by the person being called.

True

As a means of promotion, letters to potential clients should be typed on your business stationery and each one personally signed by you.

True

As a professional, you should challenge negative feedback and ask for the specific reasons on which the negative comments are based.

True

As another promotional option, you should send direct mailers that are non-appointmentoriented to existing clients as well as potential clients.

True

As part of your sales strategy, you should join and be active in professional or civic club(s).

True

At a portfolio-showing, most printed samples should be handed to the client for examination as you discuss them.

True

Before starting work for any client, you should provide a written statement of what can be expected, when, and for approximately how much.

True

By law, the self-employed must pay 90% of their annual federal tax bill in quarterly payments over the course of a year or risk paying a penalty.

True

Compared to agencies and companies, the publishers of newspapers, books, and magazines offer the least lucrative assignments.

True

Complete confidence in your abilities is a crucial step in selling your skills to others.

True

Except for new hires and employees performing poorly, performance reviews should be conducted annually for every employee.

True

Experience has shown that presenting several concepts to a client at once, and letting him or her select among them often leads to the client selecting elements from each of the concepts and then asking that they all be combined in a new concept.

True

Foote states that the most effective contractual protection for most assignments is a proposal letter that has been custom-tailored to the specific circumstances.

True

For a publication to be an effective advertising medium for you, the publication must be highly vertical, which means that it reaches the target audience with little waste.

True

Remembering the names of individuals to whom you have been introduced or have met in the past is a powerful business advantage because it lets the person know that he or she is important enough to be remembered.

True

Responding to a client's question with a cheerful "I think s," or a reflective "I guess " does not create a good impression.

True

Statistics show that the majority of unpaid invoices that are over 120 days old are never completely paid.

True

Talent reps are self-employed individuals who solicit prospective clients on behalf of several freelances, in return for some degree of representation exclusivity as their agent and a percentage of the resulting sales.

True

Tardiness usually creates a negative impression even if you have a very good reason for being late.

True

Temp agencies pay the employer's share of FICA and Medicare taxes for anyone who does assignments through the agency.

True

The basis for taxation is the amount of money that remains from income after all expenses related to generating that income are deducted.

True

The best creative ideas seldom come in a flash of inspiration, and are usually the result of a process typically known as brainstorming or blue-skying.

True

The better you are tailored and the neater you appear, the greater are your chances of being considered for a good assignment.

True

The client's needs and objectives always take precedence over one's creative agenda.

True

The higher the expense deductions, then the lower the base amount on which your tax will be figured and the lower your taxes.

True

The individual conducting a formal performance review of an employee should be the one who determines the employee's salary.

True

The initial fact-finding meeting that a creative holds should be attended by the client and all individuals who are needed for conceptual input, especially the decision-makers for the assignment.

True

The more money you get before starting an assignment, the less likely a client is to stick you by not paying the complete bill after the job is finished.

True

The only valid private criticisms must relate to job performance, including how the employee's work does or does not meet the objectives of the client or the assignment.

True

The original cost or the fair market value, whichever is less, of any lost or stolen business item is deductible from your business income for tax purposes.

True

The single best and easiest way to say thank you to a client is to attach a personal thank you note to the invoice at the completion of a job.

True

The two areas in which misunderstandings with clients frequently arise are one's method of operation and billing.

True

The two best ways to improve profits are to reduce expenses and increase sales.

True

To be effective, service ads need to run several times.

True

Web sites are a good medium to display examples of your work.

True

When a client files for Chapter 7, Chapter 11, or Chapter 13 court protection, chances are that the creditor will collect only a small portion of what is owed.

True

When a new job is received, a production manager should be assigned responsibility for all aspects of the job.

True

When analyzing the market, you should try to find clients with needs or products for which your skills will add significant value, satisfaction, or increased sales.

True

When getting a portion of your job estimate up front before starting the work, the industry's standard is one third of the total job estimate.

True

When presenting the results of your work to a client for approval, your best concept should be shown full-sized and accurately rendered.

True

When searching for how to hold the interest and attention of a potential client and to produce ideas that are relevant for this client, it is often helpful to use the "role playing" approach, whereby you try to put yourself in the client's shoes.

True

Whenever you have to lay off or fire an employee, you should call a staff meeting as soon as possible to explain to the other employees what happened and why.

True

With regard to the completion and ultimate success of your work, most clients feel they have a lot more at stake than you do.

True

Work for a publication can provide the freelance with high prestige because the freelance's name and work are usually widely circulated in print.

True

Writers and illustrators can sell publishers one-time rights to their work, which provides to the creative person the opportunity for multiple sales of the same work.

True

You can establish a personal relationship with nearly any client if you use "small talk" to discover and discuss areas of mutual interest.

True

You should avoid discussing pricing until you have shown the client just how good your work is.

True

You should send a client three written requests for payment before turning up the collection heat through legal means and pressuring the client to pay.

True

Your sales strategy should focus on how your professional services can help solve the problems of your clients' business.

True

A lawyer's letter is a statement from a lawyer sent by priority mail telling the recipient that he or she is being sued for nonpayment, so payment outside the court will no longer be accepted.

False

A portfolio showing and a capability brochure are successful only if they produce immediate results in the form of an assignment or a contract.

False

A quote is a flexible price based on fixed conditions.

False

After periods of intense working pressure, employees should be allowed time during working hours when they can just be idle.

False

After presenting the results of your work to a client, you should always ask if the client likes the concept.

False

Agencies tend to keep the less stimulating jobs in-house and farm out the more creative jobs.

False

All business expenses, no matter how large or small, must be supported with an actual receipt in order to be tax deductible.

False

Among publications, agencies, and companies, the widest variety of assignments and the fewest hassles come from working for publications.

False

As a business owner, you should become close friends with only your most senior employees.

False

As a full-time freelance, if you do not have much time or experience in developing descriptive literature about your company, it is best to put off developing this until you can create some really great literature.

False

Bartering is trading your services or goods for money.

False

Being highly organized is the antithesis of creativity.

False

Business downturns should dictate how and when you ought to actively engage in sales efforts.

False

Commenting that you do not like a work is a valid public criticism.

False

Compared to the possible benefits, the cost to register with a reputable temp agency is minimal, currently running anywhere from $25 to $100.

False

Creative individuals working for the retailing industry nearly unanimously report high wages, flexible clients, and at least moderate satisfaction.

False

Doing a credit check on a potential client guarantees beforehand that the client has financial stability and is one who will pay all debts.

False

Doing a job now for free for a client who would like to defer payment until the client's company is in a better financial position usually pays off in the long run with very profitable jobs from this client.

False

Doing a project on speculation usually leads to a better return on your investment than making sales calls or contacting potential clients.

False

E-mail solicitations are usually a very effective way to promote your products or professional services.

False

Experience has shown that freelances and copywriters can usually get a high number of very good assignments just by leaving their portfolio with the right people at reputable companies.

False

Freelances should lower their prices only when they are in dire need of work.

False

House accounts pertain to jobs from clients who have a contract with a talent rep for creative services every month for at least a year.

False

If a client fails to pay you for a job, then for tax purposes this unpaid amount is a loss that is deductible from your business income.

False

If a client has not adequately defined a job, then no matter how many questions a freelance or creative asks or probes, this will not help the client define his or her objectives.

False

If a client has not paid his or her long-overdue invoice, work on the client's sympathies by saying you need the money to pay your rent or to pay for a computer or something similar to that.

False

If a prospective client wants to try you out, you should agree to accept the client's first job assignment on speculation.

False

If an employee deserves a raise because of truly outstanding service and work, she or he should be given it even if it puts the employee above the salary range for the job.

False

If an employee's work repeatedly has been unsatisfactory, then when you fire that employee, you should soften the blow by promising him or her a good letter of reference.

False

If you are an owner or principal, you should normally expect a good employee to put into the business at least the same degree of dedication and hard work that you have put in.

False

If you are self-employed, then you do not have to pay social security and Medicare taxes.

False

If you are very busy with work, you should not solicit new clients at that time.

False

When doing a job that was secured through a temporary employment firm, it is typically the individual doing the job who determines what is to be charged for the completed job.

False

When managing company paperwork, you should read every paper that comes across your desk, even if you can quickly judge that it has no business value.

False

A cash flow business financial report forecasts when income and expenses will occur.

True

One way to remember the first name of someone is to associate the person, in your mind, with someone or something else.

True

Operating expenses may be for any amount as long as the amount is reasonable.

True

Proving in court that your services were satisfactorily performed is really difficult in a field where services are subjectively evaluated.

True

Regardless of how successful is your business is, an average of at least four hours per week should be devoted to marketing efforts.

True

For most creative firms that are located in an urban area, a realistic market is the area within ____________ of the creative firm's office.

50 miles

30 to 35 good samples of your work are all you need for a presentation of your portfolio.

False

A balance sheet shows the inflow and outflow of cash during a given period, showing profitability and providing comparison data.

False

A creative person who is doing an assignment for a client has an obligation to his or her client to produce an award-winning piece of work, even if the results are not exactly what the client is looking for.

False

A firm's standards and procedures should be defined, set up, and controlled by whoever does the secretarial work for the company.

False

If you have included in your estimate letter all the necessary details about job expectations, schedule, costs, and payment terms, and the client did not call back with questions, then you can assume that the client read and understood this information.

False

If you include in your estimate or letter of agreement all the details needed to cover every possible legal contingency, then you are less likely to confuse clients and raise questions later.

False

If you need to address a person whose name you should know but you don't remember, you should simply say, "Oh my! I'm sorry, but I forgot your name."

False

If you say to a client, "Tell me what to do," this creates the positive impression that you are prepared and ready to take the initiative.

False

If you take a client to court for nonpayment of services, then winning your case would guarantee payment.

False

If you work at home at your kitchen table, then this is considered your home office and a prorated portion of your household expenses is tax deductible.

False

In all situations, the formal registration of a copyright with the Copyright Office is no longer required.

False

In order to be successful in the business world today, the supplier or creative should do favors for clients, buy them gifts, and/or wine and dine them.

False

In today's business world, lunches are considered the best meal setting for discussing business.

False

In trying to get business from new clients, your talent and experience are more important than selling skills, promotion efforts, and motivation.

False

It is beneficial to give the impression that you price your work to match your client's budget and what the local market can bear.

False

It is better to do one direct mailer covering several subjects than to do several mailers each covering just one subject.

False

Job folders or jackets have been universally replaced by electronic printouts.

False

Like advertising, mailings are cumulative, which means you must keep at it to get maximum impact.

False

Literature that a creative freelance leaves behind with potential clients should focus only on the freelance's creative capabilities.

False

Most agencies report needing the most help with ad assignments, so creating ads is the best kind of work to solicit from them.

False

On the envelope that contains a letter to a potential client, it is more professional to use a postage meter label than a stamp.

False

One disadvantage of using a talent rep is that whether the rep has secured any new clients for you during a month or not, you still have to pay the talent rep a small monthly commission.

False

Politics, religion, and controversial current events are usually appropriate topics only for casual business conversations.

False

Preparing detailed contracts for clients will pay off in iron-clad agreements and guarantee protection against client violations.

False

Pressure-filled days are an inherent component of the creative services business.

False

Raises should be based first on employee seniority and secondly on keeping up with inflation.

False

Telemarketing is the use of television advertisements to promote sales and services.

False

The accounts receivable balance of a company is the total amount of the invoices that have already been paid.

False

The best appointment time to meet with a client is believed to be in the late afternoon when the client will be more relaxed and finished with the work of the day.

False

The best legal step for claims under $2,000 is probably civil court.

False

The best managers in a creative business solicit suggestions and comments from their employees and then go with what the majority of employees suggest is the best plan of action.

False

The best protection your small company can have against your missing work because of a short-term illness or a minor accident is to have clients who are willing to wait for their job to be completed.

False

The best way to show your work is to drop off samples of your work so that potential clients can take as long as they want to review them.

False

The major cause of low billable hours is poor time-tracking and record keeping procedures.

False

The more similar your showcase ad is to the other ads in a source-book, the more effective it will be.

False

The most productive management model is the chain-of-command business model.

False

The owners of small and one-person shops do not need to spend funds on printed material that describes their services or products since they can speak one-on-one with potential clients.

False

Under the IRS guidelines for a home office, tax deductible household expenses include food, utilities, property taxes, and credit card and mortgage payments.

False

When dealing with a client's objection to your estimated fee, you should simply apologize and move on to find an amount that satisfies you both.

False

When discussing pricing with potential clients. you should always be flexible in your prices and make your apologies if the client thinks that you are overpriced for his or her budget.

False

__________ provides a way to create or modify a client's perception about a freelance or a studio's strengths and capabilities and allows a business to control somewhat its future through its positioning.

Marketing

Choose the five items below that are examples of a business capital expense.

Printers Copiers Computers Office furniture Company car

The best source for getting new clients and assignments is from ______________.

Referrals based on your reputation

When advertising creative services, always opt for _________________.

Smaller sized ads run frequently

30 minutes is about right for most portfolio presentations.

True

A "to do" list is an inexpensive but effective aid for record-keeping.

True

For creative work, the most frequently used billing procedure requests a third of the estimated cost to be paid up front, a third at first submission or review of your work, and a final third plus any miscellaneous charges upon satisfactory job completion.

True

For overall availability of jobs and pay, the single best type of client organization to seek out for assignments is usually financial institutions.

True

For someone involved in creative services, the goal of telemarketing is to get an appointment to show your portfolio.

True

Freelances usually earn less working through a temp firm than if they had obtained the job on their own.

True

Generally, the more you involve employees in all the stages of a project, the harder they will work and the greater will be their sense of satisfaction.

True

If a client does not use purchase orders, then your proposal or estimate should include a line for the client's signature of approval.

True

If a client initiates a purchase order, then the client is officially authorizing a vendor/you to begin work on a job.

True

If a dependent child earns less than $600, then his or her income does not have to be reported and is not taxable.

True

If an employer's contributions to a 401k retirement plan are immediately vested, this means that the employer's contributions belong to the employee when he or she leaves the company.

True

If you are a freelance, then you own exclusive rights to every creative work you produce independently until you release those rights.

True

If you are audited by the IRS, you will be expected to furnish an invoice to justify every business check you wrote.

True

If you are the owner of a sole proprietorship business and you personally own a car, then the IRS grants you an allowance for each mile driven in your car for business purposes, other than for commuting to and from work.

True

If you charge a client for local travel, you run the risk of overpricing yourself in the client's local market.

True

If you run a multiperson company, you should include all your competitors in your mailing list.

True

In a Chapter 11 petition, the court appoints a trustee who reorganizes and runs the company that was in danger of bankruptcy.

True

In a Chapter 7 petition, the filer asks the court to dispose of all his assets, to use the proceeds to pay off as much of his debt as possible, and to cancel what debts remain.

True

In a boss/employee relationship, the owner, principal, or manager should never publicly criticize an employee's work.

True

In attaching the assets of a client for nonpayment, the client's bank is ordered to freeze or reserve an amount in the client's account equal to your bill so that these funds will no longer be available for the client's use.

True

In creative services, brochures and booklets are examples of collateral work.

True

In order to get appointment leads, a more effective promotional medium than advertising is to target a small group of potential clients and reach them through a combination of a written letter followed by either a phone call or direct mailer.

True

In presenting the results of your work to a client, the more you explain your creative approach in the context of the client's objectives, the more value you add to your concept.

True

In small claims court, your case is usually heard within a month or two and a lawyer is not necessary.

True

Income that you invest in a government approved retirement plan is tax-free income until the money is withdrawn.

True

It is typical for younger employees of a company to have lower salaries, on average, than older, experienced staff.

True

It is usually more difficult to get business from new clients than from existing clients.

True

Mid-morning or mid-afternoon are considered the best times of day to make telemarketing phone calls to potential clients.

True

Money paid to a dependent child can qualify as a tax-deductible business expense if she or he performs meaningful work and is compensated realistically.

True

Most clients associate creative people with only one or two of the many things they are capable of doing.

True

Most employees who get paid for 40 hours of work per week typically average only 25 to 30 billable hours.

True

Most small routine jobs under $3,000 should require only a single-page estimate letter.

True

Negative feedback about your work is seldom meant to be personal.

True

No one client should ever contribute more than a quarter (25%) of a freelance's yearly income.

True

Nonbillable activity includes marketing, record-keeping, and administrative tasks.

True

Once money has been saved in a government approved retirement plan, it cannot be withdrawn without penalties until the age of 60.

True

Below is a list of seven things that help make clients more at ease with freelances or creative people and also more comfortable with their work style. Choose the one thing on the list that does not belong. Read all the statements before you make your choice.

Wear stylish, attention-getting clothes to show your creativity and independence.