Risky Business
Possibility of financial gain, financial loss, or personal injury
What is Risk?
Amount of money remaining after all business expenses have been paid
What is profit?
System of deciding what is right and wrong in a reasoned and impartial manner
What is ethics?
Study of how goods and services are produced, distributed, and consumed
What is economics?
Primary financial reason businesses operate
What is profit motive?
A business being legally responsible for damages or injuries suffered by another person
What is being liable?
Financial document shows a company's assets, liabilities, and net worth
What is a balance sheet?
Rules and codes of conduct that guide ethical behavior called
What are principles?
Amount of satisfaction a consumer receives from a product or service called
What is economic utility?
Three major expenses associated with hosting a professional sporting event
What are salaries, facilities, and event promotion?
A business assumes the financial cost of a risk instead of purchasing insurance
What is risk retention?
An activity that generates income for a business called
What is a revenue stream?
Situation in which someone must choose between right and wrong called
What is an ethical dilemma?
Created when a product or service is available exactly when consumers want it
What is time utility?
Income an investment provides to an investor called
What is ROI?
A professional sports organization cancels an event because the potential financial losses are too great
What is risk avoidance?
Process of predicting future costs and revenues for a sporting event called
What is forecasting?
A famous athlete is offered millions of dollars to promote a product but knows the advertisement contains misleading information
What is an ethical dilemma?
A sports apparel company improves the material and comfort of its jerseys to make them more appealing to customers
What is form utility?
Company's wealth in the form of money or property called?
What is capital?
A city spends millions of dollars to attract a professional sports franchise. The investment could result in significant profits or major financial losses
What is speculative risk?
An investor provides $200,000 to help launch a new sports entertainment company in exchange for partial ownership
What is Venture Capital?
Term for the development process in which people progress from childish behavior to making mature, responsible decisions based on principles
What is character development?
A sports fan has only $100 to spend and must choose between attending a concert or purchasing tickets to a basketball game
What is scarcity?
A city hosts a major sporting championship. Thousands of visitors spend money at local hotels, restaurants, and businesses
What is economic impact?