Deck 13: Public Sector Sport

Question 1

Of the following, which is a trend impacting financial management in public sector sport facilities?

A) Demand for services has increased
B) The type and variety of services and facilities have increased
C) Programs are now designed to appeal to a broad demographic
D) All of the above
E) None of the above

Answer 1

D

Question 2

The pricing paradox related to public sector sport is a result of which of the following?

A) Affordable pricing for public programs combined with lower tax revenues
B) Providing a multitude of affordable programs
C) Operating as self-sufficient entities
D) Generating revenues to offset expenses not covered by a tax subsidy
E) All of the above combine to create the paradox

Answer 2

E

Question 3

Land, buildings constructed on land, and improvements made to land are known as which of the following?

A) Real property
B) Personal property
C) Millage
D) All of the above
E) None of the above

Answer 3

A

Question 4

What does one mill equal?

A) 1/10 of a dollar
B) 1/100 of a dollar
C) 1/1,000 of a dollar
D) 1/10,000 of a dollar
E) 1/100,000 of a dollar

Question 5

Advertising and sponsorship revenues must be sought by parks and recreation programs according to which state's laws?

A) South Carolina
B) Utah
C) Minnesota
D) Michigan
E) Georgia

Question 6

The Billie Jean King National Tennis Center is an example of which type of public-private partnership model?

A) Public sector leasing
B) Private sector takeover
C) Private sector pump-priming
D) Multiparty arrangement
E) None of the above

Question 7

When taking over the Singer Bowl, what did the USTA offer?

A) To spend a minimum of $5 million at the site
B) To let the city use the facility for 30 days a year
C) To let the city maintain the facility
D) To run the facility as a private tennis facility
E) All of the above

Question 8

Today, the USTA generates __________ through the operation of the Billie Jean King National Tennis Center for New York City on an annual basis.

A) $400,000
B) $2,500,000
C) $5,000,000
D) 10,000,000
E) None of the above

Question 9

Which of the following is the most common tax source used to fund the construction and operation of public sector sport facilities?

A) Property tax
B) Sales tax
C) Excise tax
D) Income tax
E) Use tax

Question 10

When selecting the type of bond to use when building a recreation facility, a municipality must do which of the following?

A) Determine whether the facility will generate enough revenue to retire the debt
B) Determine whether the facility will generate enough revenue to operate the facility
C) Determine whether the facility will generate enough revenue to maintain the facility
D) All of the above
E) None of the above

Question 11

Public facility authority (PFA) bonds are similar to general obligation bonds (GOB).

Question 12

For community-based programs, grants are more important for construction, and fundraising is more important for operations.

Question 13

The second-most-common tax source to fund the construction or operation of public sector sport facilities is the sales tax.

Question 14

A use tax is a levy imposed on certain goods and services that are purchased outside a state and brought into the state.

Question 15

The assessed value of property is equal to its fair market value.

Question 16

Public sector sport is offered for its profit potential.

Question 17

Taxes specifically on the sale of sporting goods products is an example of an excise taxes.

Question 18

A term bond is paid in a single payment at the end of the loan period.

Question 19

While common, collaboration between organizations for the financing of new public sector sport facilities is not an economic necessity.

Question 20

Joint use agreements and public/private partnerships are collaborations between the public and private sectors.