Chapter 4. Sport Management. Financial Principles

The concept of _______ is probably the best single measure of an industry's impact

• aggregate market value of firms in industry

• value-added

• total output

• total spending

______ is/are anything that an organization owns that can be used to generate future revenues

• Liabilities

• Owners' equity

• Bonds

• Assets

Which statement concerning the tradeoff between financing through debt or equity is true?

• Generally, financing with debt carries more risk than equity

• Generally, financing with debt is more expensive than equity

• Both A & B

• Neither A nor B

The increase in ticket prices in all leagues in recent years reflects

• consumers' increased affluence

• the growing popularity of sport

• decreased regulation on ticket scalping

• All of the above

The philosophy behind a "hard" salary cap is to

• constrain all franchises to spend the same amount on payroll

• change the behavior of high-payroll teams

• share certain types of revenue amongst all franchises

• All of the above

Where revenue sharing may be effective as a tool to improve competitive balance is when it is used in conjunction with a ________

• luxury tax

• reverse-order draft

• soft salary cap

• hard salary cap

Which league has seen the most dramatic growth in TV revenues over the last 15 years?

• NHL

• NFL

• NBA

• MLB

When organizations borrow, they are legally obligated to pay back _____, plus ______

• interest, expenses

• the principal, interest

• debt, liabilities

• bonds, the principal

Which league has the highest credit rating in sports?

• NFL

• NBA

• MLB

• NHL

In spectator sports, stadium construction projects are often financed with _____

• expenses

• interest

• equity

• bonds