Sport Finance Final

Do not

NCAA revenue distributions to member schools (do/do not) go directly from the NCAA to the school

Student fees

College athletic department-allocated revenues include which of the following?

Portfolio

Combination of financial assets held by an investor

Conduct post-audit analysis

Final step in the capital budgeting process

New jobs, new earnings or income, new tax revenue

Financial returns measured by an economic impact study

Payback period method

Of the capital budgeting methods, which one ignores the time value of money as it fails to take into account the cost of capital?

Capital finance, operating budgets, league loan pools

One source of risk is current economic conditions. Of the following, which is impacted by changes in current economic conditions?

Annuity

A series of equal payments or receipts made at any interval of time is referred to as which of the following?

9 billion

According to the HBO Real Sports video, the youth sport tourism industry is a ________ dollar industry.

Synergistic premium, controlling interest, marketability

Adjustments made to determine the value of a specific ownership interest

Risk of time

Risk increases as the length of time funds are invested increases. What is this known as?

Rate of return

The gain or loss on an investment over a period of time

should not

The geographic area of impact (should/should not) be determined late in an economic impact study

Any installation, delivery, or packaging costs, Discounts to the initial price, The sale of existing equipment or machinery, Taxes

The initial cost of a capital project is the actual cost of starting the project adjusted for which of the following?

C corporation

The main disadvantages of forming a business under a _____________ structure is that there is double taxation of profits, and the cost of forming the business and operating the business is higher than other structures

Payback Period

The number of years required to recover the initial capital investment of an organization

Finance

The science of fund management. It applies concepts from accounting, economics, and statistics.

Statement of cash flows

This financial statement tracks cash in and cash out of an organization over a specified period of time.

Current ratio

This ratio is an indication of whether an organization can meet its current liabilities--those due within a year--with its current assets.

Debt ratio

This ratio measures how an organization finances its operation with debt and equity.

Income statement

This shows the organizations income over a specific period of time

Time-switcher

This type of visitor changes the time they are coming to a community to coincide with a basketball game in the community. In an economic impact study of its basketball team, how would you classify this type of visitor?

Casual visitor

This type of visitor comes to a community for one event but also makes time to attend a basketball game. In an economic impact study of its basketball team, how would you classify this kind of visitor?

No familial relationship, Parties have no financial relationship, Neither party has an ownership interest in the other

To be at "arms' length" means that

Present value

Today's value of a future cash flow?

Market approach

Valuation approach relies on prices that similar assets sell for in the marketplace

Cost approach

Valuation method calculates the cost to re-create the business or asset

Real value

Which of the following refers to the purchasing power of a dollar?

Income approach

Approach to valuation also referred to as discounted cash flow analysis or a discounted cash flow approach

MIRR

As facility projects can often lead to non-normal cash flows, it is recommended that which of the following be used when developing a capital budget?

Production opportunities, time preferences for consumption, risk, inflation

In order for investors to purchase stock in a company, they will require a return of at least a certain amount. The amount investors require depends on which of the following?

90

More than __% of DI athletic programs have expenses that exceed revenues on an annual basis

emotional

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

Par value

The ________ of a bond is the face value, or amount of principal that the bond is worth at maturity.

Demand, scarcity, price

The choices that individuals and organizations make regarding financial management are influenced by which of the following?

Arms race

The continuous building of bigger and better athletic facilities for the sole purpose of attracting youth sport participants is often referred to as

TV and marketing rights

What are the primary sources of NCAA revenue?

Discount rate

What is a measure of risk or uncertainty of time?

Tax abatements

What is an indirect source of public financing?

Level of risk

What is determined by comparing the risk of one asset to another?

Distribution to DI members

What is the NCAA's main expense?

A loan

What of the following is NOT a form of equity financing?

Tournication

What term is used to describe the tendency for youth sport families to combine travel for competitions with travel for pleasure/leisure?

Opportunity cost

When citizens decide to raise their taxes to fund two new sports stadiums rather than to raise taxes for something such as education, they missed a chance to improve the educational system. What is this known as?

Scarcity

When sport leagues do not expand into a market that can support a franchise, or when they create rules to limit the movement of existing franchises, which of the following economic concepts is being applied?

Net profit margin

Which of the following is a profitability ratio that measures what percentage of an organization's total sales or revenues was net profit or income?

Inflation rate

Which of the following is calculated by investigating changes in the Consumer Price Index (CPI)?

Current yield

Which of the following is the amount earned annually from the interest payment compared with the price of the bond? It is typically expressed as a percentage return

Double-declining balance

Which of the following is the depreciation method that is most aggressive at allocating loss of useful life to the early years of the asset's use?