Finance Final Exam

Which factor is driving up the operating costs of a college or university athletic department?

All of the above: arms race, moving up a division, free market for college coaches, increasing tuition on college campuses

Of the following, which is a trend impacting financial management in public sector sport facilities?

All of the above: demand for services has increase, the type and variety of services and facilities have increased, programs are now designed to appeal to a broad demographic

Of the following bond types, which is issued by a public entity?

All of the above: general obligation bonds, auction-rate bonds, lease revenue bonds, revenue bonds

Financial returns measured by an economic impact study include which of the following?

All of the above: new jobs, new earnings or income, new tax returns, positive externalities

This type of individual comes to a community for one event while also attending a basketball game. If a university is performing an economic impact study of its basketball team, this individual would be classified as what kind of visitor?

Casual visitor

Which of the following is sold by either a government agency or a non-profit corporation set up to build a facility?

Certificate of participation

What is the NCAA's main expense?

Distribution to Division 1 members

NCAA revenue distributions to member schools go directly from the NCAA to the school

False

The assessed value of property is equal to its fair market value

False

The geographic area of impact should be determined late in an economic impact study

False

The revenues that member schools receive from conference distributions are the largest percentage of overall departmental revenues

False

The sale of naming rights has little to do with getting a new stadium financed and completed

False

Time-switchers leave a community when it hosts an event

False

Tourism tax revenues are the most common source of public financing for sport facilities

False

For schools in Division 1 -- FBS conferences, where does the largest portion of the athletic program's revenue come from?

Football

Historically, which bond was the most common method used for facility financing?

General obligation bonds

Which of the following is a bond issued by a municipality in which the revenue stream backing the payment of the bond is an actual lease, not just revenues from a source?

Lease revenue bonds

Which of the following is the most common tax source used to fund the construction and operation of public sector sport facilities?

Property tax

Which type of bond is a form of public finance paid off solely from specific, well-defined sources such as hotel taxes, ticket taxes, or other sources of public funding?

Revenue bonds

Overestimations of economic impact occur because most analyses do not account for ______, those local residents who leave town during the event period because of the event.

Reverse time-switchers

Which of the following is a source of governmental financing that, according to its proponents, is not paid for by the public?

Tax increment financing

What are the primary sources of NCAA revenue?

Television and marketing rights fees

This type of individual changes the time he or she is coming to a community to coincide with an event being held in that community (i.e., University of South Carolina basketball game. If the university is performing an economic impact study of its basketball team, this individual would be classified as which of the following types of visitors?

Time-switcher

When constructing a survey to measure direct spending at an event, the following question is designed to determine the type of visitor. Survey question: "Does this visit to Houston replace any other past/future visit to this area?"

Time-switcher

A tax specifically on the sale of sporting goods products is an example of an excise taxes

True

A use tax is a levy imposed on certain goods and services that are purchased outside and brought into the state

True

Academic research conducted by economists to measure the economic impact of sport facilities shows that these facilities have little or no impact on the community

True

An indirect source of public financing is infrastructure improvements

True

Joint use agreements and public/private partnerships are collaborations between the public and private sectors

True

More than 90% of Division 1 athletic programs have expenses that exceed revenues on an annual basis

True

Not measuring opportunity cost causes the overestimation of economic impact

True

Psychic impact is the emotional impact on a community that results when the community hosts prestigious events or major sports teams

True

The second-most-common tax source to fund the construction or operation of public sector sport facilities is the sales tax

True

Typically, the most complicated tax to analyze when calculating fiscal impact is the sales tax

True

When cities and other political entities invest in a new stadium, the team using that stadium will receive most, if not all, of the additional revenue generated within the stadium while paying for only part of its costs

True