Sport Finance Exam 1 Questions With 100% Correct Answers

Sport Finance Exam 1 Questions With 100% Correct Answers Finance - answerScience of fund management Financial Sectors (3) - answerMoney/Capital markets, investments, financial management Money Markets - answerHighly liquid, short-term securities. Investments - answerSecurity choices made by individual and institutional investors as they build portfolios Ex. Merrill Lynch and Edward Jones Financial Management - answerRequires financial department. Must forecast revenue and plan future expenses Differences with sports than other industries - answerDiverse objectives of owners Imbalance of competition Revenue Sharing, salary constraints Ways to finance operations - answerDebt Financing, Equity finance, Government Financing, Gifts Debt Financing - answer$ is borrowed to be repaid over a period of time. Equity Financing - answerOwners exchange a share or portion of their ownership for money. Ownership obtains funds w/o incurring debt or payments. Government Financing - answerState, federal, or municipal provide land use. Gifts Financing - answerCharitable donations, either cash or in-kind. Retained Earnings - answerA portion of earnings that a firm saves in order to fund operations or acquire assets. GDP - answerGross Domestic Product. Market Value of goods and services produced in borders of a country, state, or region in a given year. GDSP - answerGross Domestic Sports Product. Market value of a nation's output of sport related goods and services in a given year