QUESTION 1

1. Dick's Sporting Goods hires the Institute of Internal Auditors (IIA) to analyze its inventory management. This is an example of ___________

Operational auditing

Compliane auditing

Finanial statement auditing

Integrated auditing

1 points

QUESTION 2

1. The price of shares can be affected due to a wide variety of factors. Which of the following factors is not an example of an external factor that affects stock prices?

Antitrust decisions affecting the league

Environmental regulations affective the arena

A change in workplae safety rules that apply to operating the team

Trade a star player or hire a new coach

1 points

QUESTION 3

1. A small sporting goods store does a large amount of payments through checks, resulting in a buildup in payment float. What would be the most effective way to reduce the store's float?

Use electroni transactions

Increase the amount of check payments

Concentration banking

Decrease the amount of cash transactions

1 points

QUESTION 4

1. A certain company files for bankruptcy. After filing, they are allowed to continue running the business unless otherwise ordered by the bankruptcy court. This allows them to repay as much of the debt as possible. What chapter bankruptcy did they file?

Chapter 7

Chapter 13

Chapter 11

Chapter 10

1 points

QUESTION 5

1. Mr. Spanos is in need of a loan to start up his business venture of owning a batting cage facility. Before he is able to receive a loan from the bank, what five criteria will the bank look at before they choose to offer the loan?

Capacity, Character, Collateral, Cost, Condition

Capital, Honesty, Job Status, Success Probability, Partnerships

Character, Capacity, Collateral, Capital, Condition

Job Status, Income, Credit, Cost, Character

1 points

QUESTION 6

1. Under Armour is publicly traded company who has already sold shares through the Intial Public Offering phase and the secondary market. If they chose to offer more shares, what is one type of buyer that they would be able to reach through the primary market?

Employees on a pro rata basis

Existing shareholders in a private placement

The general public in an IPO

Buyers in a dividend reinvestment plan

1 points

QUESTION 7

1. What internal strategic decision will increase the stock price of a publicly owned sports team?

Team's star player gets traded

Borrow money for stadium expansion

Team signs a new, highly lucrative sponsorship deal

Team plays out dividends

1 points

QUESTION 8

1. The Tampa Bay Rays are looking to relocate to a new city. This means the team would need to find funding for a new stadium. The owner has stated that he would be willing to pay out of pocket for a portion of the stadium, however, he is planning on receiving public funding for the majority of it. What financial techniques could the team utilize to attain public funding?

General obligation bonds, Tax Rebates, & Tax Exemptions

Loans, Partnerships, & Equity Offerings

Certificates of Participation, Tax Reveneue Bonds, & Related Investment Pools

Cash Contribution, Tax Incremental Financing, & Tax Rebates

1 points

QUESTION 9

1. Which type of partnership has greater access to capital than sole proprietorship do, has profits that are taxed only once when distributed to the partners, and has the combination of at least two parties to help enhance managerial decision making?

General

Limited

Combined

Group

1 points

QUESTION 10

1. Concepts like Zero-based Budgeting, Variable Costs, and Fixed Costs are as examples of what kind of Data?

External Data

Future Data

Internal Data

Fixed Data

1 points

QUESTION 11

1. Sport organizations utilize __________ to follow an outline throughout the year when it comes to financial ideas or issues which arise throughout the year.

Financial Planning

Revenue Planning

Expense Control

Budgeting

1 points

QUESTION 12

1. Dr. Hatfield decided he wanted to purchase a team of his choosing. He decided to purchase the publically traded Washington Redskins. He did so by buying the outstanding shares of the General Manager and other major share holders. What tactic did Dr. Hatfield use to buy the team?

Golden Parachute

Initial Public Offering

Preemptive Rights

Common stock

Hostile Takeover

1 points

QUESTION 13

1. Bond financing is a primary method that many organizations use in order to finance new facilities. Which of the following is not an advantage to using bonds for financing?

Interest on bonds is tax deductible (versus stock dividends, which are not deductible)

Bond financing can be reasonably inexpensive for an established company with a good credit rating

The principal loaned amount must be paid in full when the bond matures

The market for trading and issuing bonds is strong and established

1 points

QUESTION 14

1. There are multiple types of Financial Ratios. Which of the following uses this equation: current ratio= total current assets/total current liabilities?

Activity

Liquidity

Profitability

Firm Valuation