Finance Final Exam
Which factor is driving up the operating costs of a college or university athletic department?
All of the above: arms race, moving up a division, free market for college coaches, increasing tuition on college campuses
Of the following, which is a trend impacting financial management in public sector sport facilities?
All of the above: demand for services has increase, the type and variety of services and facilities have increased, programs are now designed to appeal to a broad demographic
Of the following bond types, which is issued by a public entity?
All of the above: general obligation bonds, auction-rate bonds, lease revenue bonds, revenue bonds
Financial returns measured by an economic impact study include which of the following?
All of the above: new jobs, new earnings or income, new tax returns, positive externalities
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?
Casual visitor
Which of the following is sold by either a government agency or a non-profit corporation set up to build a facility?
Certificate of participation
What is the NCAA's main expense?
Distribution to Division 1 members
NCAA revenue distributions to member schools go directly from the NCAA to the school
False
The assessed value of property is equal to its fair market value
False
The geographic area of impact should be determined late in an economic impact study
False
The revenues that member schools receive from conference distributions are the largest percentage of overall departmental revenues
False
The sale of naming rights has little to do with getting a new stadium financed and completed
False
Time-switchers leave a community when it hosts an event
False
Tourism tax revenues are the most common source of public financing for sport facilities
False
For schools in Division 1 -- FBS conferences, where does the largest portion of the athletic program's revenue come from?
Football
Historically, which bond was the most common method used for facility financing?
General obligation bonds
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?
Lease revenue bonds
Which of the following is the most common tax source used to fund the construction and operation of public sector sport facilities?
Property tax
Which type of bond is a form of public finance paid off solely from specific, well-defined sources such as hotel taxes, ticket taxes, or other sources of public funding?
Revenue bonds
Overestimations of economic impact occur because most analyses do not account for ______, those local residents who leave town during the event period because of the event.
Reverse time-switchers
Which of the following is a source of governmental financing that, according to its proponents, is not paid for by the public?
Tax increment financing
What are the primary sources of NCAA revenue?
Television and marketing rights fees
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 South Carolina 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?
Time-switcher
When constructing a survey to measure direct spending at an event, the following question is designed to determine the type of visitor. Survey question: "Does this visit to Houston replace any other past/future visit to this area?"
Time-switcher
A tax specifically on the sale of sporting goods products is an example of an excise taxes
True
A use tax is a levy imposed on certain goods and services that are purchased outside and brought into the state
True
Academic research conducted by economists to measure the economic impact of sport facilities shows that these facilities have little or no impact on the community
True
An indirect source of public financing is infrastructure improvements
True
Joint use agreements and public/private partnerships are collaborations between the public and private sectors
True
More than 90% of Division 1 athletic programs have expenses that exceed revenues on an annual basis
True
Not measuring opportunity cost causes the overestimation of economic impact
True
Psychic impact is the emotional impact on a community that results when the community hosts prestigious events or major sports teams
True
The second-most-common tax source to fund the construction or operation of public sector sport facilities is the sales tax
True
Typically, the most complicated tax to analyze when calculating fiscal impact is the sales tax
True
When cities and other political entities invest in a new stadium, the team using that stadium will receive most, if not all, of the additional revenue generated within the stadium while paying for only part of its costs
True
