Sport Finance
When an organization borrows money that must be paid back overtime, usually with interest,________ Financing is being used.
Debt
This ratio measures how an organization finances its operation with debt equity
Debt ratio
The sport industry is classified as an industry by the U.S. Census Bureau.
False
Three interrelated sectors exist within finance. The goal or out come of those working in which of the following sectors is to acquire and secure funds to maximize shareholder wealth?
Financial Management
This type of financing includes charitable donations, either cash or in-kind, made to an organization and is the primary source or operating and investigation income for major collegiate sports programs.
Gift
For all sport and entertain organizations,_____ financing may include land use, tax abatement, direct facility financing, and infrastructure improvements
Government
A form of line-item budgeting, last year's budget is increased or decreased b a percentage using which method of budgeting
Incremental budgeting
This financial statement tracks cash in and cash out of an organization over a specified period of time.
Statement of cash flows
The major disadvantages of forming a business under which 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
Subchapter S corporations
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
Distributed club ownership model leagues are usually structured as non-profit organizations
True
The Gross Domestic Sports Product (GDSP) is the market values of a nation's output of sport related goods and services in a given year
True
The sport industry relies on the discretionary income of spectators and participants
True
Typically, owners within an industry compete for wealth maximization. Owners in sport might not be interested in this goal. Rather, they may be interested in...
Winning championships, seeking celebrity status, protecting a community asset
This budgeting method requires starting the budgeting process with a zero base.
Zero based budgeting
The ______ shows the organization's income over a specified period of time.
income statement
An estimation of an organization's worth according to the stock market is _____
market value
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
net profit margin
Which of the following is an estimate of how much money investors will pay for each dollar of the organization's earnings?
price-to-earnings ratio
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
Which of the following measured the return rate an organization's owners or shareholders are receiving on their investments?
return on equity
A _____ is a forecast because it is based on projecting future sales.
revenue budget
The_____ is a picture or snapshot of the financial condition of an organization at a specific point in time.
Balance sheet
Antitrust law applies to single-entity sport leagues
False
This ratio measures how an organization sells and replaces its inventory over a specified period of time.
Inventory turnover ratio
Three interrelated sectors exist within finance. The focus of which sector is on security choices made by individual and institutional investors as portfolios are being built?
Investments
Which of the following forms of budgeting is preferred in sport as it begins with a floor of expenses while also using cost behavior and cost identification
Modified zero based budgeting
Under this sport franchise ownership model, ______ is the most common model of team ownership
Multiple owners/private investment syndicate model
The vast majority of for-profit businesses in the United States operate as which of the following?
Sole proprietorships
This ratio is an indication of whether an organization can meet its current liabilities--those due within a year ---with its current assets.
current ratio