PRT 466 Quiz Questions

An important calculation for retail budgeting, which is figured by dividing revenue by attendees, is called: a. Per cap b. Sales figures c. Bottom line d. Depreciation

a

As the executive director of an athletic booster club, you are launching a fundraising campaign to support a new indoor practice facility for your university's football team. In a fundraising campaign, all of the following would be important to include in your message to potential donors, EXCEPT: a. A description about the poor maintenance conditions of your current practice facility. b. Information about how the facility will achieve the university's future goals for the football team's success. c. Examples of other athletic facilities at your university that were built through fundraising efforts. d. Information about how potential donors can make contributions

a

Food and beverages at sporting events and facilities are often priced higher than other settings based on which pricing strategy? a. Demand-based pricing b. Quality assurance pricing c. Price gouging d. Cost recovery pricing

a

From a financial perspective, which of the following identifies a TRUE statement about how sport in the USA is different from sport in other countries? a. Funding for sport in the USA comes primary from the private sector, rather than from central government. b. Sport in other countries, particularly Europe, is more highly funded by schools and universities than in the USA. c. Community sport does not generate the same high level of financial activity as spectator sports in the USA. d. Revenues in US professional sport is increasing, while it is decreasing in most countries throughout the world.

a

The developmental phase of sport where entertainment becomes its primary purpose and fans become customers is called the "_______________ Phase" a. Commodification b. Integration c. Marketing d. Negotiation

a

Using a fund development strategy, the primary goal of the initial contact phase is to: a. Interest people in getting more information about your organization in order to become a first time donor b. Convert a one time donor into a more committed donor c. Acquire a large contribution for a new building project d. Make personal phone calls for potential planned giving

a

Which of the following BEST represents a key difference between Financial Accounting and Managerial Accounting? a. Financial accounting is focused on reporting to audiences outside the company; Managerial accounting focuses on reporting to audiences inside the company b. Financial Accounting is focused on planning and decision-making; Managerial accounting is focused on managing reports c. Financial accounting is regulated by GAAP; Managerial accounting is regulated by the IRS d. Financial accounting is associated with expense budgets; Managerial accounting is associated with revenue projections e. All of the above describe key differences between financial accounting and management accounting

a

Which of the following is NOT a benefit of a multi-sector sport industry? a. All sports are funded more equally b. Opportunities for partnerships to provide facilities or services c. Greater choice of programs for consumers d. The industry is better able to respond to market demands

a

Which of the following is NOT true about non-profit organizations in the United States? a. They are not allowed to make a profit b. They provide some public benefit c. They receive tax benefits d. They often use volunteers

a

Which of the following would NOT be considered a best practice for selling merchandise at your facility or event? a. Keep all retail areas out of high traffic areas to reduce crowding. b. Conducting market research to ensure stocked inventory matches contemporary styles and consumer demand. c. Place a number of inexpensive items at the counter or at kiosks to encourage impulse buying. d. Ensuring displays are well positioned and vibrant to catch the eye of customers.

a

You are selling sponsorships for a local NHL team. If a potential partner's goal is to increase foot traffic in their local store, which of the following sponsor benefits would be the likeliest to achieve that goal? a. Coupon on all tickets b. Logo on team training T-shirts c. A full-color sign in the arena d. A promotional mention on all game radio broadcasts

a

__________________ erodes the buying power of money over time. a. Inflation b. Purchasing power c. Depreciation d. Interest

a

One characteristic of an annual campaign is that: a. They are usually used for large capital projects b. They are mostly comprised of smaller donations c. Annual fund campaigns usually require significant time to cultivate potential donors d. Funds from annual campaigns are often less reliable than other forms of fund raising

b

Securing investment or loans to purchase a building, fitness equipment, and office equipment needed to open a gym would be considered: a. Cost of Doing Business b. Capitalization c. Operating Expenses d. Asset Management e. Financial Liabilities

b

Which of the following best defines price elasticity? a. Method of comparing whether two groups are willing to pay the same price for a product b. Measure of size of demand fluctuations based on price changes c. Condition where demand decreases as price increases d. Price that can be reasonably charged

b

Which of the following examples best describes cost-recovery pricing? a. A local swim club not charging a fee to join their swim team due to the costs being covered by a sponsor. b. A program sets a registration price at $100 for 1000 participants because their expenses are $100,000. c. A college athletic program pricing tickets at a 50% discount for students. d. A baseball team lost $50,000 last year, so they are adding $1 to the price of each ticket.

b

Which of the following items sold in a concession stand would likely generate the most event revenue for your organization? (Retail price in parentheses) a. Pulled Pork Sandwich ($8.00) b. Hot Dog ($3.00) c. Thai Chicken Nachos ($10.00) d. Crab Cakes ($14.00)

b

Which of the following scenarios would likely NOT increase demand? a. Effect of lowering the price for swim team resgistration b. Effect of adding more instructors to cover additional fitness classes c. Effect of a team winning a championship on merchandise sales d. Effect of an unseasonably warm weekend in January on rounds of golf

b

Which of the following statements about sponsorships is NOT True? a. Seeking sponsorships requires research and significant time building relationships b. Sponsorships should be categorized into three levels (gold, silver, bronze) to make selling easier c. Sponsorship revenues are possible for sport organizations in the non-profit and public sector d. Sponsorship proposals should be tailored specifically to address the goals of a potential partner

b

In economic terms, what are opportunity costs? a. They are expenses associated with promoting business activity, such as marketing and advertising. b. When a new project is started, they are the expenses associated with starting the project. c. When a choice is made, they are the potential losses of economic benefits from available alternate choices. d. At a sport event, they are the costs associated with customers who chose not to attend the event.

c

In terms of economic principles, which of the following best describes the term "supply"? a. The amount of a product available regardless of price b. The inventory of product you have to sell c. The amount of a specific item offered at a given price d. The amount of materials you need to manage a program

c

It is usually accepted that sport programs that are considered merit services use equity pricing strategies. Which of the following is NOT a reason for this pricing approach? a. These programs want to ensure that people from socially disadvantaged populations can participate. b. These programs have a grant or subsidies to offset program costs. c. These programs want to attract customers from commercial sport programs with lower prices. d. These programs provide some community-level benefits.

c

Licensing is potentially a realistic revenue stream in which of the following situations: a. Your logo might be considered offensive to a particular group b. Your organization's logo is not registered as a trademark c. There is demand for products featuring your organization's logo d. Your organization's logo closely resembles another team's popular logo

c

The MAIN funding source of local public recreation providers, such as Raleigh Parks and Recreation Department is: a. Grants b. User Fees c. Taxes d. Donations

c

The financial objectives of a commercial sector organizations usually DO NOT include: a. Generating a profit b. Developing a new revenue stream c. Taking on financial losses to meet a public need d. Providing return on investment for shareholders

c

The overall increased operating costs in sport can be related to what trend? a. Greedy players demanding higher salaries. b. General decrease in sponsorship revenues for sport organizations. c. Need to provide better quality experiences for spectators and participants as customers. d. Higher taxes for sport organizations compared to other industry sectors.

c

This term is used to describe the strategy used by a sponsoring company to develop ways to promote their sports sponsorship and actively target potential customers as part of a sport sponsorship program. a. Maximum exposure b. Adding value c. Activation d. Cross-promotion

c

When considering demand-based, discriminatory, or variable pricing, all of the following may influence the pricing decision EXCEPT: a. Quality level of the product or service b. Distribution characteristics, such as time or location. c. Having a standard price d. Customer characteristics

c

When designing an evaluation of a sponsorship agreement, which of the following is probably NOT a goal of your sponsor to be evaluated? a. Whether the sponsorship increased customer traffic in the company's stores b. Whether the sponsorship gained the company media exposure on TV or other media outlets c. Whether the sponsorship helped you to raise the funds necessary to put on a successful event d. Whether the sponsorship increased awareness of their brand among your audience

c

Which of the following is NOT true about special fund raising events? a. Return on investment is generally lower than for other fund raising techniques b. They provide brand awareness and exposure c. They are a great source of revenue, regardless of how well they are managed d. They often require a lot of staff time and energy

c

Which of the following reasons best explains why sport media rights can be licensed? a. Media outlets must obtain an FCC license to broadcast games with a portion of the fee going to sports leagues. b. The internet has made it easier to restrict access to broadcasts. c. Sports leagues can copyright transmission of their events as intellectual property. d. Showing live game video is considered a public service.

c

Which of the following represents the BEST example of licensing in sports? a. Rock n Roll Marathon selling T-shirts to race participants b. Belk paying the Charlotte Sports Commission a naming rights fee for their bowl game. c. Adidas paying NC State a percentage of sales of hats to Dick's Sporting Goods featuring the Wolfpack logo. d. Little League World Series logo on Pepsi cans

c

Which of the following statements related to charging for parking is NOT true. a. To charge for parking, your organization needs to control access to convenient parking spaces b. Parking staff should be well informed about your event or facility and provide effective customer service c. Including a waiver on the back of a parking ticket means your organization has no liability for automobiles left in your care d. Customers are usually willing to pay a nominal fee for parking at special events

c

All of the following are true about international licensing EXCEPT: a. Counterfeiting and trademark infringement are major issues with foreign products b. Licensed products often appeal to international customers who are not fans of your sport c. Popularity of licensed sport products is growing internationally d. Once you have a trademark in your home country, you can license products internationally

d

All of the following may be good partner benefits of a sponsorship agreement, EXCEPT: a. Right for the sponsor to use the sport property's brand in their own promotional materials b. Hospitality opportunities for a partner's customers and/or employees c. Naming rights for a sporting event or facility. d. Making a donation to support the success of the sporting event.

d

Most sport organizations in the commercial sector use this corporate structure, which prevents owners from being held personally responsible for debts and has flow-through taxation (that is, owners claim profits or losses on their personal income tax filings). a. Sole Proprietorship b. Partnership c. S Corporation (S Corp) d. Limited Liability Corporation (LLC)

d

The "Rule of Thirds" is . . . a. A process of breaking donors into equal groups among three staff members tasked with contacting donors in order to reduce staff fundraising burdens. b. A motivation tactic for fundraising staff that divides staff into three groups that compete to raise the most money. c. A recognition that three different fundraising strategies are needed to achieve total fundraising goals, with each strategy bringing in 1/3 of donations. d. A planning strategy that separates donors needed into three groups with different numbers of donors and expectations for giving levels.

d

When entering a market, researching what price competitors in your market are charging and intentionally setting a lower price for a short period of time is called _________________ pricing. a. Prestige b. Going rate c. Demand d. Penetration

d

Which of the following BEST represents what retail and event sales mean to sport organizations? a. Retail and event sales are the largest sources of revenues for sport organizations. b. Retail and event sales are often a distraction from the primary mission of sport organizations c. Retail and event sales are the primary way sport events create economic impact d. Retail and event sales serve as a way to enhance the event experience for a sport organization's customers

d

Which of the following is true about current licensing management? a. Since players are under contract to teams, NFL Properties has the rights to license their names and likenesses b. Sport organizations often pay license fees to get their brand seen on products as a public relations activity c. Licensing is always handled internally by sport organizations d. In order to establish a licensing program, you need to own a trademark and have demand for products featuring the trademark

d