Sport Finance

The _______is amount earned annually from the interest payment compared with the priceof the bond reflected as a percentage return.

Current Yield

The _____ forecasts how much cash the organization will have on hand and how much it will need to meet expenses.

Cash budget

If the demand for certain games or events increases and the demand curve shifts to the right, what should ticket managers do?

Charge more for those games or events

Using this method capital budgeting, expected cash flows are discounted by the project's initial cost of capital to determine when the project will break even

Discounted payback period

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?

Double-declining balance

Of the following which is NOT a form of equity financing?

Government Funding

The discount rare that makes the present value of the estimated cash flows equal to the initial cost of the investment in which of the of the following?

Internal rate of return

When the citizens of Hamilton County, OH, decided to raise their taxes to fund two new sports stadia rather than to raise taxes for something like improving the educational system in the county, the missed chance to improve the educational system is known as ______.

Opportunity cost

The ______of a bond is the face value, or amount of principal that the bond is worth when principal amount is due.

Par value

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

Payback period

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

ALL OF THE ABOVE

The interest rate banks charge their best customers is referred to as the?

Prime rate

______ is a forecast because it is based on projecting future sales.

Revenue Budgeting

This budgeting method requires starting the budgeting process with a zero base

Zero based budgeting

As facility projects can often lead to non-normal cash flows, it is recommended that _________ be used when developing capital budget

Modified internal rate of return

The four steps to capital budgeting

1. Determine the initial cost of the project or projects 2. Determine the incremental cash flow of a project 3. Select the capital budgeting method 4. Conduct a post- audit analysis

What percentage of businesses have equity ownership?

100%

The Major disadvantages of forming a business under which structure is that there is double taxiation of profits and the cost of forming the business and operating the business is higher than other structures.

C Corporations

Which of the following budgets allows management to forecast future requirements related to property, facilities, and major equipment?

Capital Expenditure budget

When using zero based budgeting, each part of the organization where budget decisions are made is referred to_____.

Decision Unit

The ____ is added to the risk-free rate to reflect the likelihood that the issuer will default.

Default risk premium

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

Demand, Scarcity, and Price

The required rate of return to justify an investment in a capital project is the _______.

Discount rate

The _____ lists primary activities undertaken by a unit to achieve its goals and allocate dollar amounts to each

Expense Budget

A form of line-item budgeting, last year's budget is increased or decreased by a percentage using which method of budgeting?

Incremental Budgeting

Which of the following forms of budgeting is preferred in a sport as it begins with a floor of expenses while also using cost behavior and cost identification techniques?

Modified Zero Based Budgeting

Which league prohibits the publicly traded ownership model?

NFL

Which capital budgeting method is preferred by most mangers as it analyzes cash flows rather than net earnings?

Net present value

Which of the following is a discounted cash flow method that compares the present value of a project's future cash flows to its initial costs?

New present value

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

Production opportunities, Time preferences for consumption, Risk, Inflation (ALL OF THE ABOVE)

This budgeting system is associated with output budgeting in which specific goals and objectives form the framework for a strategic, goal oriented budgeting process.

Program Planning Budgeting Systems

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?

Scarcity

The vast majority of for-profit businesses in the US operate as ______.

Sole proprietorships

This method of depreciation attempts to take the non-linear loss of a fixed asset's value into account with depreciation occurring late after purchase. Using this method, the denominator for a fixed asset with a useful life of 5 years is 15

Sum of years digits, accelerating depreciation

This method of depreciation attempts to take non-linear loss of a fixed asset's value into account with depreciation occurring quickly after purchase. Using this method, the denominator for a fixed asset with a useful life of five years is 15.

Sum-of-years digits, decelerating depreciation

Of the following, which is an indirect source of public financing?

Tax Abatement's

Of the following, which is not an advantage of incremental budgeting?

The approach encourages managers to spend up to the budget to ensure that the budget is maintained the following year.

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

Payback period

Which of the following is the final step in capital budgeting process?

Conduct a post-audit analysis