Question 1

If the event objective is quality rather than profitability, then:&#10;A)over-concentration on costs might well damage the success of the event.&#10;B)a sponsor is needed.&#10;C)the organiser should create a profit-focus team.&#10;D)the organiser should create a quality-focus team.

Accepted Answer

D  Focusing too much on costs can compromise quality, and a quality-focus team ensures the event meets its quality objectives.

Question 2

The financial objective in an organisational event could be:&#10;A)to keep within the budgeted cost.&#10;B)to spend the most.&#10;C)to make profits.&#10;D)maximum profit.

Accepted Answer

The best choice is to keep within the budgeted cost as it ensures that the event does not go over the allocated funds and stays financially responsible. Spending the most may lead to unnecessary expenses and is not a viable financial objective. Making profits and maximum profits may be applicable for profit-driven events, but not all events have such objectives, and the primary goal should be to stay within budget.

Question 3

The event-coordinator is the individual who:&#10;A)manages the staff on behalf of the client.&#10;B)manages the client on behalf of the event.&#10;C)manages an event on behalf of the client.&#10;D)manages the staff on behalf of the event.

Accepted Answer

The event-coordinator manages an event on behalf of the client. They are responsible for overseeing all aspects of the event planning process, including budgeting, logistics, vendor management, and execution. While they may work with staff, their primary responsibility is to ensure the event is successful for the client.

Question 4

A major issue for event organisers is to know:&#10;A)approximate number of employees.&#10;B)the suppliers' contact details.&#10;C)how many people will attend.&#10;D)the budget for entertainment.

Accepted Answer

Knowing how many people will attend is crucial for event organizers in order to plan the logistics, seating arrangements, food and beverage requirements, and more. This information also helps with selecting the appropriate venue, advertising the event, and managing the overall budget. While the other options may also be important, knowing the number of attendees is the most essential.

Question 5

A budget helps to:&#10;A)regulate the operation of an event over a given period of time.&#10;B)understand hidden expenses.&#10;C)structure a list of expenses.&#10;D)divide fairly income and outcome for all tasks.

Accepted Answer

A budget helps to regulate the operation of an event over a given period of time, by outlining the expected income and expenses and allowing for adjustments as needed. While it may also help to understand hidden expenses and structure a list of expenses, these are secondary benefits to the primary goal of regulating the operation. Dividing income and outcome for all tasks is not necessarily a goal of budgeting, as some tasks may not have income or outcome associated with them.

Question 6

Budgeting is a method of controlling expenses and costs because:&#10;A)it helps to establish clear lines of who can or cannot spend money.&#10;B)it helps to clarify certain amounts.&#10;C)managers find it more convenient.&#10;D)it helps to increase profits.

Accepted Answer

Budgeting establishes clear lines of authority and responsibility regarding who can spend money, which helps control expenses and costs.

Question 7

If a department has a budget, normally the authority to spend it has to be:&#10;A)the head of department.&#10;B)the CEO.&#10;C)the customers.&#10;D)the financial manager.

Accepted Answer

The head of department is usually given the authority to spend the budget allocated to their department. This is because they are responsible for managing the operations of the department and ensuring that the budget is used to achieve the department's objectives. The financial manager may provide advice and guidance on how to use the budget effectively, but the final decision on spending lies with the head of department. The CEO and customers are not typically involved in day-to-day budget management.

Question 8

It is important to remember that a large number of events have a predetermined budget because:&#10;A)the event is not intended to raise money.&#10;B)the event has small number of attendees.&#10;C)it is much easier.&#10;D)many managers prefer this approach.

Accepted Answer

Events that are not intended to raise money often have a predetermined budget, as the purpose of the event is not to generate revenue but rather to provide a specific experience or achieve a particular goal. In these cases, the budget is often set at the beginning of the planning process and serves as a guideline for all subsequent decisions. Choices B, C, and D are not necessarily true or relevant to why many events have a predetermined budget.

Question 9

Where there is more than one sponsor, respective areas of promotion are covered in:&#10;A)the sponsorship agreement.&#10;B)the sponsorship plan.&#10;C)the sponsorship programme.&#10;D)the sponsorship bid.

Accepted Answer

The sponsorship agreement is a legally binding document that outlines the terms and conditions of the partnership between the sponsor and the sponsored party, including the respective areas of promotion for each sponsor.

Question 10

The financial objective in a village cultural festival could be:&#10;A)to make enough money to break even.&#10;B)to make over 10,000 pounds.&#10;C)to save most of the money.&#10;D)to make maximum profit.

Accepted Answer

The financial objective in a village cultural festival should be to make enough money to break even. The purpose of cultural festivals is to promote local culture and community engagement. Therefore, the focus should not be on making a profit but on covering the costs of the event to ensure its sustainability in the future. Making a profit may be desirable, but it should not be the primary objective.

Question 11

In the case of different types of events there might be:&#10;A)different pricing of tickets.&#10;B)similar pricing of tickets.&#10;C)exactly same pricing of tickets.&#10;D)some free tickets.

Accepted Answer

The answer of In the case of different types of...

Question 12

One key to the effective financial management of events is:&#10;A)the appointment of someone from external organisation.&#10;B)to increase training.&#10;C)more funding.&#10;D)the appointment of someone responsible for it.

Accepted Answer

The answer of One key to the effective financial management...

Question 13

Ignoring the objectives of the event when setting the budget is:&#10;A)a possible opportunity to change objectives the last minute.&#10;B)a possible opportunity to invest time in other efforts.&#10;C)one of the common budgeting mistakes.&#10;D)a strategic plan.

Accepted Answer

The answer of Ignoring the objectives of the event when...

Question 14

The issue of ticket prices is:&#10;A)an irrelevant distraction.&#10;B)an occasional source of debate.&#10;C)an occasional distraction.&#10;D)a frequent source of heated debate.

Accepted Answer

The answer of The issue of ticket prices is:&#10;A)an irrelevant...

Question 15

The event coordinator manages an event on behalf of a:&#10;A)manager.&#10;B)head of a financial department.&#10;C)client.&#10;D)local government.

Accepted Answer

The answer of The event coordinator manages an event on...

Question 16

Fundraising activities might be:&#10;A)a requirement.&#10;B)an opportunity to meet volunteers.&#10;C)an alternative income for an event.&#10;D)difficult to manage.

Accepted Answer

The answer of Fundraising activities might be:&#10;A)a requirement.&#10;B)an opportunity to...

Question 17

Good financial management is important to an event:&#10;A)even those planned as not-for profit.&#10;B)only for those planned to make a profit.&#10;C)to stay within the law.&#10;D)to keep stakeholders happy.

Accepted Answer

The answer of Good financial management is important to an...

Question 18

A budget is a financial guide; it should result in:&#10;A)better coordination between the organisers of the event.&#10;B)spending less.&#10;C)building better relationships with suppliers in the market.&#10;D)finding better quality of volunteers.

Accepted Answer

The answer of A budget is a financial guide; it...

Question 19

Contribution-pricing is when:&#10;A)guests pay what they can.&#10;B)fixed costs are covered and contribute to variable costs.&#10;C)the price covers variable costs and contributes to fixed costs.&#10;D)guests pay what they feel the event is worth.

Accepted Answer

The answer of Contribution-pricing is when:&#10;A)guests pay what they can.&#10;B)fixed...

Question 20

Some costs are fixed, for example the price of a marquee is the same:&#10;A)whatever the number of people that attend.&#10;B)after negotiations.&#10;C)whatever it is being used for.&#10;D)whatever the weather.

Accepted Answer

The answer of Some costs are fixed, for example the...

Deck 6: Financial Management and the Budget