Sport Finance Test 1 KINS 6520 | Latest Update | 2024/2025 | 100% Pass
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Course
Sport Finance
Institution
Sport Finance
Sport Finance Test 1 KINS 6520 | Latest
Update | 2024/2025 | 100% Pass
What is the primary purpose of financial management in sports organizations?
To ensure the efficient allocation of resources and maximize profitability.
How do sports organizations typically generate revenue?
Through ti...
Sport Finance Test 1 KINS 6520 | Latest
Update | 2024/2025 | 100% Pass
What is the primary purpose of financial management in sports organizations?
✔✔To ensure the efficient allocation of resources and maximize profitability.
How do sports organizations typically generate revenue?
✔✔Through ticket sales, sponsorships, merchandise sales, and broadcasting rights.
What is the difference between fixed costs and variable costs in sports finance?
✔✔Fixed costs remain constant regardless of the level of output, while variable costs change
with production volume.
What is the role of budgeting in sports finance?
✔✔Budgeting helps organizations plan and control financial resources, ensuring they can meet
their operational goals.
Why is cash flow important for sports organizations?
1
,✔✔Cash flow indicates the organization’s ability to meet its short-term obligations and invest in
growth opportunities.
What financial statement provides a snapshot of an organization's assets, liabilities, and equity?
✔✔The balance sheet.
What does the term "depreciation" refer to in sports finance?
✔✔Depreciation is the allocation of the cost of a tangible asset over its useful life.
How do interest rates affect sports financing?
✔✔Higher interest rates increase the cost of borrowing, impacting an organization's ability to
finance projects.
What is the significance of financial ratios in sports finance?
✔✔Financial ratios help assess an organization's financial health and performance compared to
industry benchmarks.
How does a sports organization measure its profitability?
2
, ✔✔By analyzing metrics such as net income, return on investment (ROI), and profit margins.
What are "revenue streams" in the context of sports finance?
✔✔Revenue streams are the various sources from which a sports organization earns money.
What is the purpose of financial forecasting in sports management?
✔✔Financial forecasting helps organizations predict future revenues, expenses, and financial
performance.
Why is it important for sports organizations to have a solid financial plan?
✔✔A solid financial plan guides decision-making and ensures long-term sustainability and
growth.
What role do sponsors play in sports finance?
✔✔Sponsors provide financial support in exchange for brand visibility and marketing
opportunities.
What is the impact of player salaries on a sports organization's financial health?
3
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