Chapter 15: Finance & Budgeting

Front

What are some of the key areas of finance that Mr. Zanca had to learn and master?

Back

Ticket revenue, food and beverage, parking, merchandise

Answer explanation

Page 294, Stated and listed are ticket revenue, food and beverage, suite rental, parking, naming rights, advertising, vendor space rentals, and merchandise 

Front

Which of the following would be considered revenue for a facility? Utilities, Salaries, Facility rental, Equipment

Back

Facility rental

Answer explanation

Page 296, Listed under “Public stadium revenue and expenses” Facility rental is listed as a revenue but renting out a space in this case the facility. Whoever wishes to use the space of the facility would need to pay for using the space. Making that payment, revenue for the facility. All other answer choices are expenses that the facility would have to pay for. 

Front

True or False? Benchmarking is the process of comparing one facility or business with another.

Back

True

Answer explanation

Page 298, states, “Benchmarking is the process of comparing one facility or business with another.”  Regarding finance, benchmarking helps to improve financial performance, identify areas of improvement, and set realistic goals.

Front

What are the three most important financial statements?

Back

Income Statement, Balance Sheet, Cash Flow Statement

Answer explanation

Page 298-300, Under “Financial Analysis” discusses Income statements, balance sheets, and cash flow statements as the three most important financial statements. They provide a comprehensive view of a company's/facility's financial health, performance, and cash position, crucial for investors, creditors, and management to make informed decisions.

Front

True or false? The balance sheet contains information pertaining to assets and liabilities as well as the amounts/costs for each?

Back

True

Answer explanation

Pages 295,298, and 301 all state or show a balance sheet that lists assets and liabilities. A balance sheet explains how much a company is worth. Look at the financial status, listing what it owns and what it owes. There should be more assets than liabilities. 

Front

What is the easiest way to finance a facility? Donations, Grants, Non-Profits Funding, User Funding

Back

Donations

Answer explanation

Why? Sometimes a facility can be built with a gift because facilities don't think about building anything unless funds have been donated for that purpose. 

Front

What is one financial consideration that is often overlooked with a facility?

Back

The financial repercussions of selling or disposing of the property

Answer explanation

Why? At a certain point a facility may/will outlive its usefulness.  

Front

What does a BOND represent?

Back

A debt owed by the facility builder, whether it is private or government.

Front

What Bond is often called the "Full Faith and credit obligations"?

Back

General Obligation Bonds

Answer explanation

Why? because the city, county, municipality, state, or other govt. unit pledges to repay the obligation with existing tax revenues or levying new taxes.

Front

What kind of tax did Cleveland utilize to help finance Jacobs Field and Quicken Loans Arena?

Back

Sin Tax

Answer explanation

Cleveland utilized a sin tax on sales of alcohol and tobacco products. That helped finance Jacobs field and Quicken Loans Arena.