Chapter 12

Question 1

*The fiscal matters of an agency depend on what factors?

Answer 1

agency size
type of funding support
economic environment

Question 2

*What’re some examples of settings of public recreational sport?

Answer 2

parks and rec.
public golf courses
public schools
military
correctional
state and national parks

Question 3

*What’re some examples of settings of privates not-for-profit recreational sport?

Answer 3

Y’s
Boys and Girls Clubs
Boy and Girl Scouts
Churches

Question 4

*What’re some examples of settings of commercial recreational sport?

Answer 4

private schools
private clubs
private facilities
resorts
cruises

Question 5

*Do the 3 sectors manage finance the same way?

Answer 5

No, the commercial sector maximizes profit, public sector provides for “the general good’, and in the private not-for-profit sector seeks to break even and improve the lives of specific groups or individuals

Question 6

*In three words, what is a budget?

Answer 6

a financial plan. It’s a working document that guides an agency in meeting its financial goals

Question 7

*What’s the difference between a balance sheet and an income statement?

Answer 7

a balance sheet illustrates assets, liabilities, and net worth. An income statement illustrates revenue, expenses, net revenue or loss

Question 8

*Many costs can be predicted with some accuracy (fixed and variable) however some costs cannot be anticipated with delivering recreational programs. What is that type of cost called?

Answer 8

contingency cost. For example, a backboard cracks and must be replaced

Question 9

*What is cost-recovery pricing?

Answer 9

pricing related to recovering some or all or the expenses associated with the program

Question 10

*What is competitive pricing?

Answer 10

price based on competitors prices

Question 11

*What is marketing pricing?

Answer 11

pricing based on supply and demand considerations. This allows for varying prices based on weak or strong demand.

Question 12

*What’s the implication for users to tax funded public recreational sport programs?

Answer 12

the programs, facilities, and serving will be provided to all people

Question 13

*Who will pay back a bond used o build a new recreational sport facility?

Answer 13

if it’s a general obligation bond, then it will be paid through future taxes. This makes sense when facilities or projects are meant for the entire community. If it’s a revenue bond, then it will be paid back from revenue made by the facility

Question 14

*Is revenue from grants provided to all 3 recreational sport sectors?

Answer 14

just public and private nonprofit

Question 15

*What recreational sport sector’s can receive charitable donations?

Answer 15

public and private nonprofit sectors

Question 16

*Are gift catalogs useful to induce charitable donations?

Answer 16

Yes, donors are able to see exactly how their donations will be spent (e.g. a specific program or a specific piece of equipment, etc.)

Question 17

*Can partnerships where facilities or programs are shared a potential way to provide additional undoing for recreational sport?

Answer 17

Yes