1st exam sport finance

Other then __________ sport leagues in the United States are subject to the Sherman Act? A. NFL B. NBA C. MLB D. NHL E. MLS

C

Which financial statement tracks cash in and cash out of an organization over a specified period of time? A. Balance sheet B. Income statement C. Statement of cash flows D. Budget E. None

C

Which of the following is the rate of return required over and above the risk free rate? A. Risk of time B. Level of risk C. Risk Premium D. Liquidity Premium E. None of the above

C

Which of the following measures the return rate an organizations owners or shareholders are receiving on their investments? A. Interest coverage ratio B. Net profit margin C. Return on equity D. Market value E. Price to earning ratio

C

For all sport and entertainment organizations ________ financing may include land use, tax abatements, direct facility financing, and infrastructure improvements. A. Debt B. Equity C. Retained earnings D. Government E. Gift

D

How many varsity athletic programs did FTC sponsor in its 60 year history? A. 16 B. 17 C. 18 D. 19 E. 20

D

Where did the majority of the athletic's departments funding originate from? A. Tuition B. Student Fees C. Sponsorships D. Donors E. Ticket sales and licensing

B`

Based on the article, which affiliation option was the most costly to transition to for FTC financially? A. NCAA 1 B. NCAA 2 C. NAIA D. Both B and C E. Both A and C

Both B and C

3 interrelated sectors exist within finance. The goal or outcome of those working in which of the following sectors is to acquire and secure funds to maximize shareholder wealth? A. Money and capital investments B. Investments C. Financial Management D. Derivative trading E. None

C

How many universities data were actually a part of the study? A. 250 B. 230 C. 226 D. 300 E. 320

C

If it is expected that it will be hard to sell a security, which of the following will be added? A. Inflation risk premium B. Default risk premium C. Liquidity premium D. Maturity risk premium E. None of the above

C

The lower the debt ratio the _______

higher the profit

Assessment ratio

utilize assets for revenue

Inventory turnover ratio

within a year how much inventory turns over (bigger the number the better)

The article focused on what level of collegiate athletics participation for its study? A. NCAA D 1 B. NCAA D 2 C. NCAA D 3 D. NAIA E. NJCAA

A

Assessment ratio formula

Asset turnover= net sales (income statement)/ AVG total assets (Balance sheet)

For this type of bond the annualized interest rate on the bonds is reset at auctions held every 7 to 35 days. A. General obligation bonds B. Auction- rate bonds C. Lease revenue bonds D. Revenue bonds E. All of the above

B

Stock ( Green Bay Packers) A. Debit B. Credit

B

The _______ shows the organizations income over a specified period of time. A. Balance sheet B. Income statement C. Statement of cash flows D. Budget E. None

B

What does return on equity ratio measure?

How much goes back to people who invested

The article focused on what aspect of collegiate athletics? A. Athletic eligibility B. Mandatory student athletic fees C. Athletic scholarships D. Athletic department revenues E. Student athletic attendance

B

Best ratio is what??

2 to 1

3 interrelated sectors exist within finance. Which of the following includes securities markets, investment banking, insurance, and mutual fund management? A. Money and capital investments B. Investments C. Financial management D. Derivative trading E. None

A

A stadium A. Debit B. Credit

A

Equipment A. Debit B. Credit

A

Profitability

ability to make money

Inventory turnover formula

cost of goods sold (Income statement)/ AVG inventory (Balance sheet)

Risk increases as the length of the time funds are invested increases. What is this known as? A. Risk of time B. Level of Risk C. Risk Premium D. Liquidity premium E. None of the above

A

When an organization borrows money that must be paid back over time, usually with interest, what kind of financing is being used? A. Debt B. Equity C. Retained Earnings D. Government E. Gift

A

Which of the following is a picture or snapshot of the financial condition of an organization at a specific point in time? A. Balance sheet B. Income statement C. Statement of cash flows D. Budget

A

Which of the following is the nominal or quoted risk-free rate of interest? A. The real risk free rate plus an inflation premium B. The real risk free rate plus a default risk premium C. The real risk free rate plus a liquidity premium d. The real risk free rate plus a maturity risk premium E. None of the Above

A

Which of the following statements identifies a finding from the articles research? A. Mandatory athletic fees had minimal impact to cost of attendance B. Student athlete eligibility was higher at D 1 schools versus FCS schools C. Athletic scholarships impacted the cost of students tuition costs D. All the above E. None

A

Which ratio is an indication of whether an organization can meet its current liabilities those due within a year with its current assets? A. Current ratio B. Quick ratio C. Total asset turnover ratio D. Inventory turnover ratio E. Debt ratio

A

Who were the 2 main players in the article concerning the future of FTC? A. Stanley (AD) and Lance (FTC president) B. Lance (AD) and Stanley (FTC president) C. Stanley (AD and Logan (FTC president) D. Logan (AD) and Stanley (FTC president)

A

What is ARF? A. The athletic departments reserve fund B. The athletic departments recruiting fund C. The athletic departments reception fund D. The schools retirement fund

A.

Three interrelated sectors exist within finance. Which of the following sectors focuses on security choices made by individual and institutional investors as portfolios are being built? A. Money and capital investments B. Investments C. Financial management D. Derivative trading E. None

B

Under this sport franchise model, ______ is the most common model of team ownership? A. Single owner/ private investor model B. Multipole owners/ Private investment syndicate model C. Multiple owners/ Publicly traded corporation model D. Single entity model E. Distributed Club ownership model

B

What is FTC's athletic budget? A.$700,000 B. $800,000 C. $900,000 D. 1,000,000

B

What is determined by comparing the risk of one asset to another? A. Risk of time B. Level of risk C. Risk Premium D. Liquidity premium E. None of the above

B

Which of the following was the first major professional sports team to declare bankruptcy in the middle of a long term facility lease? A. New York Yankees B. Phoenix Coyotes C. Milwaukee Brewers D. San Francisco Giants E. New England Patriots

B

Advertising expense A. Debit B. Credit

Credit

Player salaries payable A. Debit B. Credit

Credit

Current ratio formula

Current Ratio=Current Assets/Current Liabilities

An estimation of an organizations worth according to the stock market is _______ A. Interest coverage ratio B. Net profit margin C. Return on equity D. Market Value E. Price to earnings ratio

D

In general the chances of receiving back an investment in a large market MLB team is _______ that for a small market team? A. Less than B. Slightly less than C. Equal to D. Greater than E. None of the above

D

Typically owners in a specific industry compete for wealth maximization. Owners in sport might not be interested in this goal. Rather they may be interested in _____? A. Winning championships B. Seeing celebrity status C. Protecting a community asset D. All of the above E. None

D

When calculating the nominal interest rate, which of the following premiums is added to account for the risk of time and interest rate risk? A. Inflation premium B. Liquidity Premium C. Default risk premium D. Maturity risk premium E. None of the above

D

Which ratio measures how often an organization sells and replaces its inventory over a specified period of time? A. Current ratio B. Quick ratio C. Total asset turnover ratio D. Inventory turnover ratio E. Debt ratio

D

Why is this aspect important to know? A. Provides an understanding of how collegiate is funded B. Provides quantitative data on the growth trajectory of mandatory athletic fees C. Provides insight into the future of mandatory student fees being used to support collegiate athletics D. All the above E. None

D

What sport management academic courses were applied by the athletics director as part of his decision making process? A.Ethics B. Finance C. Marketing D. All the above E. None

D. all the above

Debt ratio formula

Debt ratio= liabilities/ assets (both off balance sheet)

Based on the article what affiliation did FTC's AD recommend to the president? A. NCAA 2 B. NCAA 3 C. NAIA D. NJCAA E. None of the above

E

Of the following statements regarding the arts, entertainment, and rec segment of our economy, which of the following is true? A. The industry employs a large number of full time workers and relatively few seasonal and part time workers B. Those working in the industry tend to be older than those working in other industries? C. Wages for those working in the industry tend to be higher than wages paid to those working in other industries D. Almost all leisure time activities, include watching movies, are apart of this sector E. Rising incomes and increasing leisure time over the next 10 years should lead to an increase in demand to this sector

E

One source of risk is current economic conditions. Of the following which is impacted by changes in current economic conditions? A. Capital Finance B. Operating budgets C. League loan pools D. Both A and B E. A, B, C are all impacted

E

This type of financing includes charitable donations, either cash or in kind, made to an organization and is the primary source or operating and investing income for major collegiate sports programs. A. Debt B. Equity C. Retained earnings D. Government E. Gift

E

Which of the following is an estimate of how much money investors will pay for each dollar of the organizations earnings? A. Interest coverage ratio B. Net profit margin C. Return on equity D. Market value E. Price- to- earnings ratio

E

Which ratio measures how an organization finances its operation with debt and equity? A. Current ratio B. Quick ratio C. Total asset turnover ratio D. Inventory turnover ratio E. Debt ratio

E

Which if the following is a profitability ratio that measures the percentage of an organizations total sales or revenues that was net profit or income? A. Interest coverage ratio B. Net profit margin C. Return on equity D. Market value E. Price to earnings ratio

Net profit margin

Return on equity formula (bigger number the better)

Return on equity= net income (income statement)/ shareholders equity (balance sheet)

liquidity

ability to turn assets into cash

Leverage

ability to use equity over debt