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