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91 Cards in this Set

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What was the Alternative Sports Boom?
It took place in the 90's. During that time sports facility construction boom as well. Proliferation of professional sports league. In crease in corporate investment in Sports.
What us the Annual Wholesales of Sporting goods?
60 Billion
Explain the Challenges ahead for sport
Challenges confronting managers. Saturated Marketplace. Doing more with less. Taking advantages of emerging technology.
What are Sources of Revenue for Private Sports arenas.
An Example is Madison Square Garden. Sources of Revenue come from Investments, Sponsorship and Donations.
What are Sources of Revenue for Public Sports Areas.
An Example is Marlins Ball Park. Hard and Soft Taxes, Grants, Subsidies, Tax Abatements( to make less strong)
List some aspects of a sports enterprise that contribute to revenue for organizations.
Tickets, Concessions, PSL's, Naming rights, Luxury Seating, Licensing, Marketing.
How many Sport Spectators are their anually and how much do they bring in.
200 Million; Corporations spend 15 billion a year producing in order to gain 75 dollars per spectator.
How much is College Athletics worth?
College Athletics is a 40 Billion Dollar Enterprise
What are the average Budgets of a College Institution?
20 million dollars per school.
What are some Primary Drivers in regards to Source of Revenue for Sports Organizations
High Salaries of Coaches, Emphasis on,Television contracts, Prominence of Corporate Sponsorship, Emergence of Licensing Agreements
Explain the League's Declining Health?
The League's Declining Health is attributed to Falling Attendance, Declining Ratings, An economic disconnect with their fan base. An Example of this is the New York Mets
Explain some Reasons that Fans Stay Home?
Totals Costs to Attend a game, Comfort of watching games at home, Player's performance/ sponsorship, Traffic and Parking, Increase in sports on TV, TV Replay and Analysis Unlikelhood of getting good seats.
What are the 2 Criteria's for an industry.
That refers to Products and Economic Activities. Similarity of Products and Similarity of Economic Activities.
What are the 8 NAICS SEctors?
1. Construction
2. Apparel
3. Wholesale Trade( goods bought in large #'s and sold in large #'s for profit.
4. Retail Trade( selling to public)
5. Real Estate
6. Education Services
7. Entertainments
8. Other Services
Explain the 3 Sector Model
Developed by Meeks in 1997 it revolves around Sports Entertainment and Recreation, Sports Products, and Sports Support Organizations.
What is the 2 Sector Model
States that Sports Activity= Producing Sector. The Sports Supports Sector is; Administration & Regulatory Athletics Associations. Sporting Goods manufactures( Wholesale and retails. Sports Facility and Budgeting. Sports Media, Management Firms, and Government Sports Councils and Authority.
What Is the Definition of Finance?
Finance is the Management of money affairs.
Define Financial Management:
The Integration f all business functions to manage a firm in a financially responsible way.
Under Financial Managers What is the Agency Theory?
The Managers work as the agent for the owner to make decisions on behalf of the company.
What should Financial Mangers do?
THey should maximize the wealth of the Company and should serve the owners first and then the creditors.
What Do Business' Do?
Business' Buy and Sell Things, 2 activities of a company are finding sources of money or capital, and to buy things.
Define Capital
A large amount of money that is invested or is used to start a business.
How does the Business Model with Arrows look?
Owners <- Business -> Customers
What is a Proprietorship?
The person and the business are 1 in the same. 1 person owns the business. Similar to Start but the lifespan is not continuous. When the owner dies so does the business.
Define a Corporation:
1 or more owners who " own stock. Continuous after the death of the initial owners, but income is double taxed.
Define a Partnership:
Multiple owners non incorperated. Easy to start but problems arise with death of owners.
What is a S-Corp and LLP
Protects Partners or owners like corporations. Taxed like a non-incorporated business
Explain the aspects of a Non Profit Organization:
Easy to Start. Generally you pay 400 dollars or more for the paperwork. Review your corporation/overview. In order for it to be a non profit, the majority of the money doesn't go to you or your family.
Explain Public and Private Accounting:
Public Accounting refers to Auditing and Taxes whereas Private Accounting refers to Cost Accounting, Budgeting, and Information System Design
Define Auditing:
An official examination of a business' financial records to see that they are true and correct.
What is considered External Accounting and What is considered Interal Accounting
Financial Accounting is considered External Accounting whereas Management Accounting is considered Internal.
What is the accounting equation?
Assets= Liabilities + Stock Holder Equity.
Define Assets:
Assets are defined as the economic resources a business own that are expected to be of benefit in the future
Define Equities:
The Legal and economic claims to the assets. The Value of a Company's shares; the Value of a property after all charges and debts have been paid.
Economic Obligations-debts-paable to outsiders
What is Owners Equity or Capital
Claims to the owners of a business, the amount of the assets that can be subtracting liabilities. Large amount of that money is invested or is used to start a business.
What does a Balance Sheet Measure:
Balance Sheet Measure Condition
What does an Income Statement Measure?
It Measures Performance
What are some of the statements we use in Finance?
Balance Sheet, Income Statement, and Statement of Owner's Equity.
What is the Income Statement Formula?
Net Sales
( Subtracted By) Cost of Goods Sold
= Gross Margin
( Subtracted By) Operating Expenses
= Net Income
What are the 3 Levels of Analysis?
Observation, Numerical Comparison's( Ex: Cost of Food/Total Sales), and Contextual Comparisons( Revenue)
What are some Accrual Ratios?
Accrual= To Increase over time. Ratios are Liquidity, Capital Adequacy, Profitability, Efficiencies, And Operating Leverage.
What is Liquidity?
The State of owning things that's value can easily be exchanged for money.
What Is capital Adequacy:
How well one leverages Assets. The ability to influence what people do. Ex Land, Teacher's Schedule, Band United Center. Enough in quantity or good enough in quantity for a particular purpose or need
Name Different Sources of Cash:
Increase Stock. Increase Liabilites( Loans), Increases in Equity( Re-Investment) Buy Things( Depreciation)
Name Different Uses of Cash:
Increase investment, Increase Cash Account, Increase in assets.
Name Costs and Cash Flow:
Fixed Costs( Owning a Building) Variable Costs( Food to Sell: Increase/Decrease Revenue), Depreciation( Buy a Car: Value, time period= how long)
What is the Statement of Cash Flow Equation?
(Minus) Cost/Expenses
= Cash Flow from Operations
(Minus) Taxes
( Plus) Depreciation
Net Operations Cash Flow
In the Income Statement what percentage is Sales?
100 % And all Percentages are taken from that 100% and Sales Number
Why do we engage in planning?
Planning offers the greatest value when the future is the most uncertain. It offers a look into the future hopefully.
What are the Basic Steps in Forcasting?
Project Sales and Expenses, Estimate the Needed investment, determine the financial needs( Ex: Restaurant, Concession)
What is Planning?
The process of thinking about what is possible for the future. Might being & Devising strategies for dealing with likely outcome/
What does thinking in Advance allow:
Allows you to plan contingency plans. INcreased speed of response to uncertain events is what the means.
What are the Market Activities?
Supply, Demand, and Market Clearing Condition?
What is the Market Clearing Condition?
The middle point on the demand curve. A market clearing price is the price of goods or a service at which quantity supplied is equal to quantity demanded
On the Supply and Demand Curve where is the price and quantity demanded?
Price is the top right and the Bottom is Quantity Demanded.
What does the quantity demanded =?
It equals the absolute supply and price/
What does the Demand Curve represent?
The Demand Curve Represents everybody who has an interest in what the graph is analyzing( IE everyone who has an interest in football)
True or False: Individuals who have no interest in a particular product or activity are represented on the demand curve?
False: They are not represented one must offer an incentive in order to entice them to be interested.
True or False: When you raise the price of an item, the quantity demanded stays the same?
False: When you change the price demanded, you change the quantity demanded. If the price is higher, the quantity demanded decreases.
What is Demand?
Demand is what the seller wants.
True or False: Higher Prices are worse.
False Higher is better because qauntity of products can go higher. Buyers pefer higher prices to ensure quantity or supply. Sellers prefer lower prices to ensure sales.
What does the law of Demand state?
The law of demand states that if all things are equal the lower prices of some item, the higher the quantity demanded, and the higher the price The Lower the quantity demanded.
What does the Demand curve represent?
It represents the willingness of people to pay for additional units of products or services.
What are the Determinants of Demand?
Consumer income and the number of consumers.
What is Supply?
Supply is the Various quantities of Products offered at a range of prices or the either range of the deamnd curve.
What effects the shifts in Supply?
Costs of Product
Prices of impact need to make the product
Taxes and Subsidies
Laws of Supply and Demand=?
If the Quantity demanded is greater than the quantity supplied, prices tend t rise.
True or False: the larger difference between quantity demanded and quanitity supplied, the greater is the pressure for prices to stay the same
False: The Greater is the pressue for prices to Rise and Fall
What happens when the quantity demanded= quantity supplied?
Prices tend to remain the same
What are the Various Elements of the Marketing Mix?
Product/Services refers to:
Usually the first mix element addressed, in the context of the market/product decision.
Price is:
Only Element of the marketing mix that isn't an expense item
Promotion refers to:
Only Marketing mix element that had in turn its own mix which is the marketing mix
Distribution is:
Only area with demanding independent customer conflicts
What is a basic Profits and Loss Statement?
Gross Revenue
Less: COGS
Gross Margins
Less: OPEX
Operating Margin
Less Tax
Less COGS( Design manufacture, ingredients, sourcings)
Less OPEx
Net Income
What does COGS refer to?
COGS= Cost of Goods Sold
What does OPEX refer to?
OPEX = Operating Expense
Price equation=
Gross Revenue( Pricing x Units= Revenue)
Less Taxes( Price may be greater than luxury taxes etc)
Promotion Equation=
Gross Revenue( Involves a decrease in pricing, rebates associated development)
Distribution Equation=
Gross Revenue( Distribution paterns often take % of gross revenues)
Less OPEX( Distribution decisions often involve operating costs)
Less Taxes( Decisions related to the logistics- where to produce, how to distribute impacts taxes)
What does Elasticity refer to?
Is a measure of what happens to a variable when another variable changes. How responsive customers are to prices.
What is the Elasticity Equation?
% Change Quantity Demanded
% change in price
What are some elements of Market Structure>?
Efficiency & equity trade offs
Market Failures & Externalities
Monopsy-> One Producer
True or False...Business unites don't need sufficient funds to implement any new strategic plans?
False: They NEED sufficient funds to implement any new strategic plans
What are some elements of Linking Budget to Strategies:
Operating Systems, Equipment, Facilities, Human Resources.
True or False: New Strategies usually don't call for significant budget reallocation?
False it usually calls for Significant Budget Reallocation
What are funding Pitfalls in Linking Budgets to Strategy?
Too Much= Waste and poor financial performance
Too Little= Slow Progress and impedes execution.
In terms or Reallocation funds, fin turning the strategic plan=?
Limited Activity, upgrading facilities fo title IX compliance.
True or False: Creating new competencies/ products does not = big shifts
False: It DOES equal big shifts, including adding a new women's sport.