1. Approximately how much money in total was spent between 2016 and 2018 on new or substantially renovated facilities?

A) $100 million

B) $1.4 billion

C) $17 billion

D) $178 billion

2. Which of the following is not an upfront cost when building or renovating a new facility?

A) Land acquisition

B) Construction

C) Salaries

D) Infrastructure development

3. The opening of Mercedes-Benz Stadium, the Atlanta Falcons' stadium, resulted in which of the following?

A) An increase in the team's net worth (19% increase over previous year.)

B) Upset local residents due to their taxes increasing

C) A cash flow problem for the team due to stadium costs

D) Unforeseen variable costs that resulted in the capital project being over budget

4.Equity financing options for organizations include all of the following, except:

A) sale of stock.

B) gifts.

C) debt financing.

D) retained earnings.

5. Why might a team be reluctant to sell stock in their organization?

A) It is illegal in some states.

B) It requires extensive disclosures of the organization's business practices. (In order to protect competitive advantage)

C) Sport organization stocks often underperform in the market.

D) There are fees associated with the sale of stock.

6. Which of the following is true about capital campaigns?

A) They can be used for facility development.

B) They can be used by non-profit associations to result in tax-deductible gifts for donors.

C) They are a method of debt financing that organizations use to increase funds.

D) They are reinvested into the organization to increase retained earnings and

decrease debt to creditors.

7. A prepayment provision establishes:

A) any penalties charged to the recipient of a loan if funds are repaid earlier than the date of maturity.

B) any reimbursements given to the recipient of a loan if funds are repaid earlier than the date of maturity.

C) the date a loan payment is due.

D) the interest rate adjustments given to the recipient of a loan if funds are repaid earlier than the date of maturity.

8. Municipal bonds can only be issued by:

A) banks.

B) the U.S. government.

C) bond markets.

D) state and local governments. (and they are only usually issued for the purpose of financial planning.

9. There are also advantages, or perceived advantages, for the local governments of the communities that host professional sport facilities. Which of the following is an economic advantage to hosting a professional sport facility?

A) Construction of a new stadium creates jobs

B) Banks lower interest rates

C) Reinvestment in other areas of the city

D) None of these is correct.

10.True or False? A sin tax is borne primarily by local residents and can be used to cover the costs of constructing, renovating, improving, or repairing sport facilities.

A) True

B) False

11. The financial information included in an operating budget can be formatted in two different ways. Compare and contrast these two methods.

12. The two most common forms of budgeting approaches include incremental budgeting and zero-based budgeting management. Please explain each of them.

13. True or False? In incremental budgeting, managers must evaluate all spending decisions on a regular basis, with the intent of adapting to a changing business environment and maximizing efficiency.

A) True

B) False

14. Which of the following is not a defining characteristic of variance analysis?

A) Ex-post examination of budgeted and actual figures

B) Can serve as an early warning system by identifying revenues that fail to meet

established goals and expenses that exceed estimates

C) Allots for a quick and easy form of management. It can be reactionary which is not a quick and easy form of management.

D) Both ex-post examination of budgeted and actual figures and can serve as an early warning system by identifying revenues that fail to meet established goals and expenses that exceed estimates

15.Explain how non-profit and public-sector sport organizations function differently from for-profit organizations.

16. True or False? Equity is ownership interest in an organization

A) True

B) False

17. Which of the following is not a defining characteristic of variance analysis?

A) Ex-post examination of budgeted and actual figures

B) Can serve as an early warning system by identifying revenues that fail to meet established goals and expenses that exceed estimates

C) Allots for a quick and easy form of management

D) Both ex-post examination of budgeted and actual figures and can serve as an early warning system by identifying revenues that fail to meet established goals and expenses that exceed estimates