Negative Space

A. Negative space is the space that is not there.  So when you draw it you draw the parts of the background that you can see.
B. For the cut out I used one color for the negative and the other for positive.  For the I drew the orange parts that i could see as the negative space.
C. If an artist can see in both negative and positive space then they will still be able to draw an item even if they can only what's in the background.  Also it gives them one more option for how to draw an item.
D. Yes, because  sometimes it looks cooler for things to be in negative space but also drawing look good when they combine the two kinds of of spaces.