SPTE 440 FINAL EXAM QUESTIONS AND
ANSWERS 100% PASS
Finance - ANS Managing money in a business
Goal of Finance - ANS Maximize firm value (make the business worth more).
Scarcity (Sports) - ANS Leagues limit the number of teams to protect team and league value.
Microeconomics - ANS Focuses on individual firms, teams, or businesses.
Macroeconomics - ANS Focuses on the entire economy (inflation, interest rates, GDP).
Opportunity Cost - ANS The next best alternative you give up when making a choice.
Sole Proprietorship - ANS One owner; simplest structure; owner has full risk.
Partnership - ANS Two or more owners sharing profits and responsibility.
LLC / S-Corp - ANS Protects owners' personal assets; avoids double taxation
C-Corporation - ANS Most flexible structure but double taxed (company + owners).
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Straight-Line Depreciation - ANS Same depreciation amount every year.
Double-Declining Balance Depreciation - ANS Higher depreciation in early years, lower later.
Sum-of-Years' Digits (SYD) Depreciation - ANS Accelerated method with higher early
depreciation.
Jock Tax - ANS Athletes pay income taxes in every state/city where they earn income.
Time Value of Money - ANS Money today is worth more than the same money in the future.
Future Value (FV) - ANS What money will grow into in the future.
Present Value (PV) - ANS What future money is worth today.
Discount Rate - ANS Rate used to discount future cash flows; higher discount = lower PV.
Annuity - ANS Equal payments made at regular intervals.
Balance Sheet Equation - ANS Assets = Liabilities + Equity.
Income Statement - ANS Shows profit over a period of time; cash vs. accrual accounting.
Cash Flow Statement Sections - ANS Operating, Investing, Financing.
EBITDA - ANS Earnings Before Interest, Taxes, Depreciation, and Amortization.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
ANSWERS 100% PASS
Finance - ANS Managing money in a business
Goal of Finance - ANS Maximize firm value (make the business worth more).
Scarcity (Sports) - ANS Leagues limit the number of teams to protect team and league value.
Microeconomics - ANS Focuses on individual firms, teams, or businesses.
Macroeconomics - ANS Focuses on the entire economy (inflation, interest rates, GDP).
Opportunity Cost - ANS The next best alternative you give up when making a choice.
Sole Proprietorship - ANS One owner; simplest structure; owner has full risk.
Partnership - ANS Two or more owners sharing profits and responsibility.
LLC / S-Corp - ANS Protects owners' personal assets; avoids double taxation
C-Corporation - ANS Most flexible structure but double taxed (company + owners).
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Straight-Line Depreciation - ANS Same depreciation amount every year.
Double-Declining Balance Depreciation - ANS Higher depreciation in early years, lower later.
Sum-of-Years' Digits (SYD) Depreciation - ANS Accelerated method with higher early
depreciation.
Jock Tax - ANS Athletes pay income taxes in every state/city where they earn income.
Time Value of Money - ANS Money today is worth more than the same money in the future.
Future Value (FV) - ANS What money will grow into in the future.
Present Value (PV) - ANS What future money is worth today.
Discount Rate - ANS Rate used to discount future cash flows; higher discount = lower PV.
Annuity - ANS Equal payments made at regular intervals.
Balance Sheet Equation - ANS Assets = Liabilities + Equity.
Income Statement - ANS Shows profit over a period of time; cash vs. accrual accounting.
Cash Flow Statement Sections - ANS Operating, Investing, Financing.
EBITDA - ANS Earnings Before Interest, Taxes, Depreciation, and Amortization.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
