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Flashcards in Unit 2 Deck (70):
1

amount of money remaining from revenues after all expenses are paid

profit

2

money a business receives from the sales of goods and services

revenue

3

apparel, tickets, concessions

revenue

4

making decisions to use resources in ways that result in the greatest profit

profit motive

5

worldwide distribution revenue is critical for profits

culture

6

marketers must understand the markets in which they sell products. The money a business receives from the sales of goods and services must be relevant to the market

culture

7

study of how goods and services are produced, distributed, and consumed

economics

8

study of the economics of the entire study

macroeconomics

9

study of the relationships between individual consumers and producers

microeconomics

10

sports and entertainment marketers are focused on ______________

microeconomics

11

relationships with consumers

microeconomics

12

usefulness

economic utility

13

amount of satisfaction a person receives from the consumption of a particular product or service

economic utility

14

when physical characteristics of a product or service are improved

form utility

15

football helmet, car

form utility

16

making product or service available when the customer wants it

time utility

17

national championship shirts

time utility

18

product is available where it is wanted

place utility

19

local sports team merchandise

place utility

20

product or service is available at an affordable price

possession utility

21

check or cash

possession utility

22

possibility of financial gain or loss or personal injury

risk

23

occurs from unavoidable weather conditions

natural risk

24

dishonest customers and employees

human risk

25

inadequately trained employees

human risk

26

occurs due to changes in the economy

economic risk

27

either a gain or loss could result

speculative risk

28

a chance of an event occurring that could only result in a loss

pure risk

29

if a loss can be prevented or the likelihood of its occurrence reduced

controllable risk

30

nothing can be done to prevent the risk

uncontrollable risk

31

a pure risk for which the chances of loss are predictable and the amount of the loss can be estimated

insurable risk

32

the chance that a dollar loss could occur.

uninsurable risk

33

the amount of the loss cannot be estimated

uninsurable risk

34

preventing, reducing, or lessening the negative impacts of risk by using the strategies of risk avoidance, risk insurance, risk transfer, and/or risk retention

risk management

35

sports and entertainment marketers need to plan to avoid risky situations

risk avoidance

36

the business is legally responsible for damages that occur

liable

37

pays for predictable losses

risk insurance

38

cost of insurance

premium

39

some risks can be transferred to another company or even to the consumer

risk transfer

40

contracting with third parties for services

risk transfer

41

including releases from liability on event tickets

risk transfer

42

assuming the cost of an uninsurable risk

risk retention

43

similar businesses facing similar risks pool resources

risk retention groups

44

resources are distributed to members that have a loss

risk retention groups

45

a system of deciding what is right or wrong in a reasoned and impartial manner

ethics

46

business should be conducted with integrity, trust, and fairness

ethics

47

high standards or rules and guidelines

principles

48

a progression in behavior where people advance from childish behavior to mature behavior based on principles

character development

49

young people need good role models

character development

50

people and businesses should act ethically while pursuing a profit

business behavior

51

power bands

business behavior

52

sometimes it is hard to continue to act ethically when you observe people who receive a benefit from acting unethically

seeking an advantage

53

only fans can really influence the behavior of ethically challenged athletes and celebrities

when being bad profits

54

good decisions are both ethical and effective

effective and ethical

55

good decisions are the right choices for the long term

effective and ethical

56

profit is the primary purpose of sports and entertainment marketing

it takes money

57

investors generally provide the funding for an event to cover all the costs that must be incurred before tickets are ever sold

finding funding

58

the income from a venture that is distributed to investors

return on investment

59

funds to repay investors are raised through

money sources

60

ticket sales

money sources

61

broadcast rights

money sources

62

licensing

money sources

63

facilities

money sources

64

a plan that predicts the expenses to be incurred and the revenues to be received

forecast

65

a plan for how available funds will be spent.

budget

66

purpose is to control costs so they do not exceed the funds available

budget

67

net worth = assets - liabilities

balance sheet

68

shows net worth at a specific point in time

balance sheet

69

shows revenues and expenses for a specific period of time

income statement

70

reveals company's profit or loss

income statement