SVM Final Exam

The four elements of a valid contract are: offer, acceptance, capacity/legality a TRUE b FALSE

TRUE

Which of the following is a picture or snapshot of the financial condition of an organization at a specific point in time? a Balance sheet b Income statement c Statement of cash flows d Budget

Balance sheet

What are some reasons why a host organization may bid on an event? a to enhance economic impact b to enhance infrastructure in the community c all of these d none of these

all of these

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? a Money and capital markets b Investments c Financial management d Derivative trading

b Investments

Which of the following is not a reason why an organization may outsource a service? a to help eliminate personnel costs b because unit costs rise c because the company does not have the technical expertise in house d to assist in operating more efficiently

because unit costs rise

The ticket sales process includes all the items below, EXCEPT a prospecting b needs analysis c begging d closing e referrals

begging

A __ is like a road map that shows where a business intends to spend its money. a marketing plan b budget c income statement d business plan e none of these

budget

This type of individual comes to a community for one event while also attending a basketball game. If a university is performing an economic impact study of its basketball team, this individual would be classified as what kind of visitor? a Casual visitor b Time-switcher c Reverse time-switcher d Incremental visitor

Casual visitor

Which of the following is sold by either a government agency or a non-profit corporation set up to build a facility? a Certificate of participation b Tax increment financing c Contractually obligated income d Asset backed securities

Certificate of participation

Which type of scheduling is correctly matched with its corresponding example? a parallel scheduling = public address announcements at a baseball game b serial scheduling = merchandising at a football game with cash machines at multiple locations c serial scheduling = hawking concessions at a baseball game at multiple locations d None of these are matches.

None of these are matches.

The [__] of a bond is the face value, or amount of principal that the bond is worth when the principal amount is due. a Coupon rate b Par value c Maturity d Current yield

Par value

The[__] shows the organization's income over a specified period of time. a Balance sheet b Income statement c Statement of cash flows d Budget

Income statement

[___] involve detailed forecasting and careful evaluation of available physical facilities, financial resources, human resources, community support, and political support. a press conferences b media kits c postevent promotion d feasibility studies

feasibility studies

Season ticket sales has two main obstacle that prevent individuals and companies from buying: a lack of time to attend games and surplus of money b suffcient time to attend games and lack of money c lack of time to attend games and lack of money

lack of time to attend games and lack of money

Facility naming rights agreements did not become widespread until: a late 1970's b mid-1980's c last half of the 1990's d early 2000's

last half of the 1990's

Not all legally binding contracts have to be in writing, but it is a good business practice and highly recommended to do so. a TRUE b FALSE

TRUE

Of the following, which is an indirect source of public financing? a a. Sales tax revenue b Sin tax revenue c Tourism tax revenue d Lottery proceeds e Tax abatements

Tax abatements

Of the following, which is not an advantage of incremental budgeting? a The budget is stable and change is gradual b The approach encourages managers to spend up to the budget to ensure that the budget is maintained the following year. c Managers can operate their departments on a consistent basis. d Coordination between budgets is easier to achieve.

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

This type of individual changes the time he or she is coming to a community to coincide with an event being held in that community (i.e., University of MIssouri basketball game). If the university is performing an economic impact study of its basketball team, this individual would be classified as which of the following types of visitors? a Casual visitor b Time-switcher c Reverse time-switcher d Incremental visitor

Time-switcher

When selecting the geographic area of impact for a concert at the MIZZOU Arena in Columbia, MO which area should the researcher choose to get the largest economic impact? a The City of Columbia only b Boone County, which contains the City of Columbia c The State of Missouri d The Columbia metropolitan statistical area

a The City of Columbia only b Boone County, which contains the City of Columbia c The State of Missouri d The Columbia metropolitan statistical area

Land, buildings constructed on land, and improvements made to land are known as which of the following? a Real property b Personal property c Millage

a Real property

Today, facilities (specially the ones in smaller markets and older ones) have a hard time finding naming rights partners. Part of the challenge is the limited existing pool of major companies. Another factor is the uncertain economic climate, what makes companies reluctant to enter into extended naming rights contracts. a TRUE b FALSE

true

Financial returns measured by an economic impact study include which of the following? a New jobs b New earnings or income c New tax revenues d Positive externalities e All of the above

All of the above

Leagues have created rules and policies to improve competitive balance. What do these rules and policies typically relate to? a Player drafts b Free agency c Player salary d All of the above

All of the above

Of the following bond types, which is issued by a public entity? a General obligation bonds b Auction-rate bonds c Lease revenue bonds d Revenue bonds e All of the above

All of the above

Of the following, which is a main part of a feasibility study? a Market demand b Economic and fiscal impact c Financing d Location, construction costs, and engineering e All of the above

All of the above

Which of the following is a bond issued by a municipality in which the revenue stream backing the payment of the bond is an actual lease, not just revenues from a source? a General obligation bonds b Auction-rate bonds c Lease revenue bonds d Revenue bonds

Lease revenue bonds

When exercising traditional pricing, organizations set prices by trying to prevent fans' perception of price gauging. That can happen if prices are set too high or increased too much from previous established prices. a True b False

True

Numerous factors must be taken into account when an event manager analyzes staffing needs. Mark the items that better match the factor with the corresponding example. a U.S. Open golf tournament is played over a four-day period = duration of event b The Senior Games were held in Louisville, Kentucky, because of the excellent volunteer support offered by the community = type of event being planned c The National Basketball Association hires people who speak multiple languages to assist with oversees events = destination-specific factors d All of these factors match their corresponding examples.

U.S. Open golf tournament is played over a four-day period = duration of event

What are the primary sources of NCAA revenues? a Television and marketing rights fees b Championship tournaments c Investment income d Sales and services

a Television and marketing rights fees

From the list below, mark the one item that is not a reason why sponsorship partnerships end. a lack of communication b failure to manage expectations c broken promises d a less appealing offer comes along

a less appealing offer comes along

Of the following, which is NOT a form of equity financing? a A loan b Retained earnings c Government funding d Gifts

A loan

When determining market demand for a facility, one must examine which of the following? a Individual ticket demand b Corporate demand c Event activity d Facility specifications and operating estimated e All of the above

All of the above

Which factor is driving up the operating costs of a college or university athletic department? a Arms race b Moving up a division c Free market for college coaches d Increasing tuition on college campuses e All of the above

All of the above

Which of the following is the responsibility of the commissioner's office under the franchisee/franchisor league structure? a Negotiate national television contracts b Establish relationships with vendors for league-wide licensed merchandise sales c Hire and supervise game officials d Negotiate a collective bargaining agreement with the players' union e All of the above

All of the above

As part of a feasibility study, a [__] directly investigates actual facilities that might compete with a subject facility in order to host events. a A financing analysis b A comparables analysis c A competitive analysis d Primary research

A competitive analysis

In which section of the feasibility study are the needs of attendees and event property owners calculated? a Individual ticket demand b Corporate demand c Event activity d Facility specifications and operating estimates

Event activity

Contracts associated with sale of land and/or interest in land, sales of goods worth more than $500, and contracts that can be completed within one year must be in writing. a TRUE b FALSE

FALSE

In which section of the feasibility study does one determine if there is sufficient revenue to pay for facility financing costs? a Individual ticket demand b Corporate demand c Event activity d Facility specifications and operating estimates

Facility specifications and operating estimates

Of the following statements regarding economic impact, which is true? a All spending of casual visitors and time-switchers should be counted in an economic impact analysis. b All spending of casual visitors and the incremental spending of time-switchers should be counted in an economic impact analysis. c Incremental spending of casual visitors and all spending of time-switchers should be counted in an economic impact analysis. d Incremental spending of casual visitors and time-switchers should be counted in an economic impact analysis.

Incremental spending of casual visitors and time-switchers should be counted in an economic impact analysis.

Which of the following occur in the area of impact representing the circulation of initial visitor expenditures? a Direct economic impacts . b Indirect economic impacts c Induced economic impacts

Indirect economic impacts

Which section of the feasibility study drives much of the rest of the study? a Market demand b Economic and fiscal impact c Financing d Location, construction costs, and engineering

Market demand

Which of the followings forms of budgeting is preferred in sport as it begins with a floor of expenses while also using cost behavior and cost identification techniques? a Incremental budgeting b Program planning budgeting systems c Modified program planning budgeting systems d Zero based budgeting e Modified zero based budgeting

Modified zero based budgeting

Which of the following is the most common tax source used to fund the construction and operation of public sector sport facilities? a Property tax b Sales tax c Income tax

Property tax

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? a Demand b Scarcity c Price d Equilibrium

Scarcity

A venue's sponsorship inventory includes all items below EXCEPT: a Intellectual Property b Venue Signage c in-game promotions d Shared category exclusivity

Shared category exclusivity

Which financial statement tracks cash in and cash out of an organization over a specified period of time? a Balance sheet b Income statement c Statement of cash flows d Budget

Statement of cash flows

Sponsors sometimes reject what appears to be a good investment opportunity due to the proposal missing the company's budget cycle a True b False

True

Three interrelated sectors exist within finance. The goal or outcome of those working in which of the following sectors is to acquire and secure funds to maximize shareholder wealth? a Money and capital markets b Investments c Financial management d Derivative trading

c Financial management

Governmental entities may decide to privatize the management of their venue for a number of reasons. Which of the following is NOT one of them? a Remove bureaucratic controls b Decrease financial losses c Increase staff size d The need for investment dollars e Increase event booking

c Increase staff size

From the list below, mark the only item that is NOT a reason why companies buy facilities' naming rights a long-term national exposure b escaping the advertisement/marketing clutter c company's loyalty to the community d platform for increasing sales e hospitality opportunities

company's loyalty to the community

There are 3 primary target markets for group ticket sales: a corporate, youth and affinity/non-profit groups. b corporate, youth and non-affiliation groups. c private, youth and affinity/non-profit groups.

corporate, youth and affinity/non-profit groups.

The major 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. a Sole proprietorships b General partnerships c Subchapter S corporations d C corporation

d C corporation

For all sport and entertainment organizations, [__] financing may include land use, tax abatements, direct facility financing, and infrastructure improvements. a Debt b Equity c Retained earnings d Government

d Government

With , teams update prices as often as once per day in response to changing conditions based on demand and sales forecasts from sophisticated mathematical programs. a traditional pricing b dynamic pricing c variable pricing d price discrimination

dynamic pricing

From the list below, mark the only statement that is correct in regards to Capacity/Legality. a parties involved must have the legal right to enter into that specific contract for it to be valid b parties involved have the intent to enter into that specific contract, but do not have to be mentally competent to sign and execute it. c parties involved have the legal age to enter into a contract, but are not authorized to represent the organization in the execution of the contract d parties involved have the legal right to enter into an specific contract, and can/could be under the influence of drugs and alcohol an still sign it.

parties involved must have the legal right to enter into that specific contract for it to be valid

charges fans a higher price and allows them to sit in seats at more desirable locations. a price discrimination b traditional pricing c variable pricing d Dynamic pricing

price discrimination

A venue/facility contract is essentially a: a sponsorship agreement b rental agreement c F&B agreement d Season tickets purchase

rental agreement

RFP stands for [___] and outlines the event's []. a request for proposal; maximum requirements b request for proposal; minimum requirements c request for publicity; maximum requirements d request for publicity; minimum requirements

request for proposal; minimum requirements

The focus of a game contract is to arrange a contest between two organizations. Its main focus is on: a time, place and financial considerations b time, place and equal playing qualities c Financial considerations and buyout clauses

time, place and financial considerations