ECONOMICS
A sports team has limited money and must choose between improving its stadium or increasing security. What economic concept is demonstrated?
Scarcity
What financial statement shows a company's revenues and expenses?
Income statement
What is the first step in the risk assessment process?
Identify potential hazards.
What concept involves making decisions based on honesty and morality?
Integrity
A stadium lets fans order food from their seats instead of waiting in line. What concept is the stadium improving?
Economic utility
What is the term for the satisfaction a consumer receives from a product or service?
Economic utility
What financial statement shows what a company owns and owes?
Balance sheet
A concert venue purchases insurance to protect itself from certain financial losses. Which risk-management strategy is being used?
Risk transfer
An athlete is offered money to promote a product but knows the product makes misleading claims. What ethical issue is the athlete facing?
An ethical dilemma
A sports team experiences lower revenue because consumers have less money available to spend. What type of risk is this?
Economic risk
A stadium adds mobile ticketing and allows fans to order food from their seats. What is the stadium trying to increase?
Economic utility — specifically making the experience more convenient.
A new entertainment business estimates startup costs, monthly expenses, and expected revenue for its first year. What financial tool communicates these expectations?
Forecast
A stadium cancels an outdoor event because severe weather makes the event unsafe. Which risk-management strategy is this?
Risk avoidance
Why might a business choose to follow ethical principles even if doing so reduces short-term profits?
To maintain integrity, trust, reputation, and long-term success.
A business purchases insurance to protect itself against certain losses. Is the business avoiding, transferring, or retaining the risk?
Transferring the risk
A business chooses to spend money on a project because it believes the decision will increase profits. What business concept is guiding the decision?
Profit motive
A business wants to determine whether the money invested in a new stadium is producing a financial benefit. What measurement should it examine?
Return on investment (ROI)
An employee steals money from a sports organization. What type of risk is this?
Human risk
A popular athlete behaves unethically away from the field. The team must decide whether to keep the player because he generates revenue. What two major areas should the organization consider?
Financial consequences and ethical considerations.
A minor league team wants to generate more money. Name three possible revenue streams it could use.
A stadium has limited resources and must decide whether to improve customer convenience, increase security, or create a new revenue stream. What two economic concepts are most directly involved?
Scarcity and profit motive.
The stadium has limited resources and must decide how to use them in a way that can improve financial success.
An investor is considering investing in a new entertainment venue. Name three pieces of financial information the investor should examine before investing.
A sold-out concert is being planned. Identify the five steps of a risk assessment.
A company discovers an employee is stealing money. Management could ignore the behavior because the employee is valuable to the organization. Why would ignoring the behavior create an ethical problem?
Ignoring theft would conflict with integrity and ethical business practices. The organization must consider its principles and the long-term effects on trust and reputation, not just short-term financial benefits.
You are managing a new minor league team with limited money. You need to balance making a profit, improving the fan experience, managing risks, and maintaining ethical standards. What economic concept explains why you cannot do everything you want?
Scarcity.
The organization has limited resources and must make choices about how those resources are allocated.