Quiz #1 - Chapters 1 and 5

For all sport and entertainment organizations, __________ financing may include land use, tax abatements, direct facility financing, and infrastructure improvements. Debt Equity Retained earnings Government Gift

Government

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? Money and capital markets Investments Financial management Derivative trading None of the above

Investments

Other than __________, sport leagues in the United States are subject to the Sherman Act. The National Football League The National Basketball League Major League Baseball The National Hockey League Major League Soccer

Major League Baseball

The choices that individuals and organizations make regarding financial management are influenced by which of the following? Demand Scarcity Price Only a and c are correct. All three—a, b, and c—are correct

Demand, scarcity, and price

Three interrelated sectors exist within finance. Which of the following includes securities markets, investment banking, insurance, and mutual fund management? Money and capital markets Investments Financial management Derivative trading None of the above

Money and capital markets

When the citizens of Hamilton County, Ohio, decided to raise their taxes to fund two new sports stadiums rather than to raise taxes for something like improving the educational system in the county, they missed a chance to improve the educational system. What is this known as? A marginal cost A fixed cost A variable cost An opportunity cost None of the above

Opportunity Cost

What is the interest rate that banks charge their best customers? Discount rate Federal funds rate Prime rate Statement rate None of the above

Prime rate

Of the following statements regarding the Arts, Entertainment, and Recreation segment (NAICS 71) of our economy, which of the following is true? - The industry employs a large number of full-time workers and relatively few seasonal and part-time workers. - Those working in the industry tend to be older than those working in other industries. - Wages for those working in the industry tend to be higher than wages paid to those working in other industries. - Almost all leisure time activities, including watching movies, are a part of this sector. - Rising incomes and increasing leisure time over the next 10 years should lead to an increase in demand in this sector.

Rising incomes and increasing leisure time over the next 10 years should lead to an increase in demand in this sector

The vast majority of for-profit businesses in the United States operate as which of the following? Sole proprietorships General partnerships Subchapter S corporations Limited liability corporations C Corporations

Sole proprietorships

Which of the following methods of depreciation attempts to take the 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. Straight-line Sum-of-years digits, decelerating depreciation Sum-of-years digits, accelerating depreciation Double-declining balance Units of production

Sum-of-years digits, decelerating depreciation