SPMT 260 Exam 2 Questions with Verified Solutions Latest Version 2025 (Rated A+)

SPMT 260 Exam 2 Questions with Verified Solutions Latest Version 2025 (Rated A+) The sport industry is a ________ dollar industry - Answers multibillion _______ aspects of sport industry shown in the media can seem staggering to the average person - Answers financial Sport industry is definitely a major force in North American business, though it is difficult to ___________ - Answers get an accurate, reliable measure of its magnitude ________ boom has created a great need for _______ - Answers financial; people with training in finance There is a difference between _______ - Answers an industry's sales and its value-added what is more accurate? industry's sales or its value-added - Answers -Value-added is a more accurate statistic -bc cost of raw materials and manufacturing are considered when calculating value-added Cost ____ and ____ are considered when calculating value-added - Answers cost of raw materials and manufacturing no universally agreed upon definition of - Answers finance finance generally refers to two primary activities of an organization: - Answers 1. How an organization generates the funds that flow into that organization 2. How these funds are allocated and spent once they are in the organization revenues - Answers Funds raised by an organization through a variety of sources including tickets, merchandise, services, and sponsorships expenses - Answers Funds spent to operate an organization such as salaries, equipment, utilities, food, travel, and insurance profit - Answers More revenues than expenses profit can be enhanced by - Answers by increasing revenues, decreasing costs, or both Income statement - Answers statement of activity or profit and loss -Summarizes an organization's revenues, expenses, and profits over a given time period assets - Answers Anything an organization owns that can be used to generate future revenues (facility, equipment) Teams can fund or "finance" _____ in many ways - Answers assets Owners' equity - Answers The amount of their own money owners have invested in the firm debt - Answers Money an organization borrows (bonds) assets examples - Answers -owners' equity -debt -franchise ownership groups -corporate conglomerates -public traded sport companies Anschutz Entertainment Group (AEG) - Answers MLS Los Angeles Galaxy, ECHL Ontario Reign, European hockey and soccer teams, part of the NGL Los Angeles Kings and NBA Los Angeles Lakers Comcast-Spectator - Answers NHL Philadelphia Flyers, ECHL Marine Mariners, minor league baseball team in Maryland Liberty Media - Answers MLB Atlanta Braves Madison Square Garden Company - Answers NHL New York Rangers, NBA New York Knicks, WNBA New York Liberty, NBA D-League Westchester Knicks, AHL Hartford Wolf Pack Maple Leaf Sports and Entertainment (owned by Rogers Communication and Bell Canada) - Answers NHL Toronto Maple Leafs, NBA Toronto Raptors, MLS Toronto FC, AHL Toronto Marlies, NBA D-League Raptors 905 Rogers Communications - Answers Toronto Blue Jays, part owner of Maple Lead Sports and Entertainment companies traded on NASDAQ - Answers -big five -churchill downs -electronic arts -international speedway corp -town sports international companies traded on NYSE - Answers -callaway golf -madison square garden -nike -vail resorts debt/liability - Answers The amount of money an organization borrows from banks or other lenders in the market organization debt payment - Answers Organization is legally obligated to pay back the original amount borrowed (principal) plus interest bonds - Answers • Financial instruments that allow the borrower to both borrow large dollar amounts over an extended period of time (20 or more years) • Issued by government and/or corporate entities • Often used to fund stadium construction