Exam (elaborations)
SPMA 2P27 Sport Finance Midterm questions well answered already passed
- Course
- Institution
SPMA 2P27 Sport Finance Midterm questions well answered already passed
[Show more]
Content preview
SPMA 2P27 Sport Finance MidtermOperational budget - correct answer ✔✔A short-term financial plan used to coordinate what is needed
to achieve the short-term goals of the company.
Capital Budget - correct answer ✔✔budget for major capital, or investment, expenditures
Variable costs - correct answer ✔✔the numbers of products that may be sold/consumed by buyers (e.g.,
cost of materials)
If majority of expenses are variable costs, reducing cost per unit improves profitability
If majority of expenses are fixed costs, maximizing sales improves profitability
Fixed costs - correct answer ✔✔Costs that do not vary with the quantity of output produced (e.g.
salaries, machinery)
If majority of expenses are variable costs, reducing cost per unit improves profitability
If majority of expenses are fixed costs, maximizing sales improves profitability
Incrimental Budgeting - correct answer ✔✔Increasing budget based on expected changes
Decrement Budgeting - correct answer ✔✔Reducing an existing budget based on expected lower
revenues to avoid a loss
Break-even analysis - correct answer ✔✔a method of determining what sales volume must be reached
before total revenue equals total costs (when earnings before deductions are 0)
, EBIT - correct answer ✔✔Earnings Before Interest and Taxes
Steps in Planning Process - correct answer ✔✔1. Gathering Information
2. Forecasting sales
3. Projecting profits and losses
4. Comparing to Industry norms
5. Determining Capital Needs
Exchange Theory - correct answer ✔✔theory that holds that people are motivated by self-interests in
their interactions with other people (give something to get something)
Economic perspective - correct answer ✔✔If benefits exceed costs, people are more likely to make a
decision becasue they feel they are being treated equitably
Equilibrium point - correct answer ✔✔Where quantity demanded = quantity supplied (price at which
consumers and producers agree)
Fan Cost Index - correct answer ✔✔a reflection of how much it costs a family to attend a professional
sporting event (4 tickets, 4 concessions, 2 souvenirs, 1 parking pass)
Pricing Strategies - correct answer ✔✔1. Expected price threshold (setting price just below expected
threshold like $0.99)
2. Anchoring (Show full price beside discounted price to set reference)
3. Consuner Willingness to Pay (WTP) (Absolute highest price a consumer will pay)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller kirus27. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76799 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now