SEM 4e Chapter 3 S&E Means Business

Pure loss risks

• involve the possibility for gain

• involve no possibility for gain

• are never insurable

• are speculative in nature

Categories of economic utility include

• place

• possession

• time

• all of these

Strategies for managing risk include

• a. risk avoidance and risk acceptance

• b. risk transfer and risk retention

• c. risk acceptance and risk denial

• both a and b

Sources of revenue for NFL teams include

• budgets, editing, and talk shows

• first downs, field goals and passes completed

• TV, partners, sponsorships, and ticket sales

• all of these

Some potential sources of funding a new movie include

• the American Film Market

• investors

• major film studios

• all of these

Economics is

• the study of sports and entertainment marketing

• the study of how goods are produced, distributed, and consumed

• the study of the relationships between goods and service providers

• none of the above

Having a profit motive means that

• charging high prices

• increasing the number of products offered

• producing what consumers want

• making decisions to use resources in ways that result in the greatest profit

Which of the following is an example of an ongoing financial cost to a business?

• salaries

• office furniture

• investors, networks, and revenue

• none of these

Forecasting involves

• purchasing and promotion

• pricing and ticket sales

• predicting expenses and revenue

• planning, distribution, price, and advertising

All of the following are examples of human risk except

• employee dishonesty

• thunderstorms

• poorly trained employees

• unskilled labor