True/False
Indicate whether the
sentence or statement is true or false.
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1.
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At the collegiate level, spiraling costs are only a concern for NCAA Division I
schools due to the number of scholarships distributed.
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2.
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PSL’s provide a one-time source of revenue.
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3.
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Professional sport teams that sign lucrative naming rights agreements with
corporations should not be concerned with the stability of the corporation.
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4.
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There is concern that the luxury seating boom in facility construction show
signs of reaching saturation.
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5.
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Naming rights are only used as a source of revenue in professional
sports.
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6.
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University athletic departments that do not generate enough revenue to cover
their costs often rely on institutional funds.
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7.
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Royalty fees are pooled and divided equally among all players on a team.
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8.
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A permanent seat license, or PSL, includes the cost of a ticket.
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9.
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Professional teams and universities that license their logo to a merchandise
manufacturer are paid a royalty fee for the license.
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10.
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Corporate sponsorship agreements often carry hospitality opportunities for the
corporation entering into the agreement.
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Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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11.
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For a permanent seat license program to be successful, _____.
a. | the franchise should offer a money-back guarantee | b. | the seat license
must be sold on a permanent basis (for the life of the venue) | c. | the owner must have
the right to sell or transfer the license to another family member | d. | All of the
above |
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12.
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What strategy gives fans the right to purchase season tickets, often for the
life of a venue, in return for an up-front payment?
a. | Flex Plans | c. | Permanent Seat License | b. | Seating License
Contract | d. | Ticket
Booklets |
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13.
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Although luxury seating has infused money into the sport industry, what concerns
still exist?
a. | Luxury suites have too few seats. | b. | Prices of suites have become too
high. | c. | Low retention rates for companies purchasing luxury boxes. | d. | Suite construction
may have exceeded demand. |
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14.
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This statute is aimed at eliminating gender discrimination in educational
institutions that receive federal funding.
a. | Title X | b. | Title IX | c. | Title
IV | d. | None of the above |
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15.
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Which of the following concession strategies has increased sales in recent
years?
a. | Food courts | b. | Wait-staff services | c. | Expanded
menus | d. | All of the above |
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16.
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Over half of the total revenue generated by the NFL comes from this source.
a. | Ticket sales | c. | Corporate sponsorship | b. | Broadcasting
revenue | d. | Luxury
suites |
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17.
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Some high schools are attempting to face the high cost of athletic programs by
_____.
a. | relying more on booster clubs | b. | soliciting corporate
support | c. | charging participant fees | d. | All of the
above |
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18.
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Corporate sponsorship is utilized as a source of revenue in _____.
a. | professional sports only | c. | college and amateur sports
only | b. | professional, college and amateur sports | d. | professional and college sports
only |
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19.
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The fastest growing source of revenue for professional sport teams has been
_____.
a. | season ticket sales | c. | naming rights | b. | sponsorship agreements | d. | luxury seating |
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20.
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The most prominent revenue source for professional sport franchises, except the
NFL, is _____.
a. | concessions | c. | ticket sales | b. | luxury seating | d. | licensing |
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21.
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Ticket revenue generated by sport organizations is dependent upon the
following:
a. | The number of season tickets and the number of walk-up sales | b. | The number of
tickets sold and the unit cost of each ticket | c. | The unit cost of each ticket and player
salaries | d. | The amount spent on advertising ticket sales and the number of tickets
sold |
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22.
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Although the general financial health of sport in America is good, sport related
costs are _____ and competition is _____. This poses a financial challenge to sport
managers.
a. | rising...decreasing | c. | decreasing...increasing | b. | rising...increasing | d. | decreasing...decreasing |
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23.
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Concessions provide a smaller source of income for high school and college
sports because _____.
a. | corporate sponsors receive concession proceeds | b. | beer is typically
not sold at these events | c. | concessions are sold in limited quantities at
these events | d. | the federal government limits the prices high schools and colleges can charge for
concessions |
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24.
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Items bearing the trademark or logo of a sport team are called _____.
a. | team merchandise | c. | official products | b. | licensed merchandise | d. | intellectual
property |
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25.
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All of the following are newer sources of revenue for professional sport
organizations except _____.
a. | corporate sponsorship and seat licenses | c. | luxury seating and
licensing | b. | ticket sales and concessions | d. | licensing and naming
rights |
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26.
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The price at which fans will resist purchasing tickets is called the
_____.
a. | price threshold | c. | luxury tax | b. | pricing cap | d. | salary cap |
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