exam 2 pt. 1 Flashcards
sales vs value added
value added is a more accurate statistic
cost of raw materials and manufacturing are considered when calculating value added
entertainment value is connected to “uncertainty of outcome”
competitive balance
Developing a management strategy to maintain greater control over legal uncertainty
Risk management
DIM process
Develop, Implement, Manage risk
An injury or wrong suffered as the result of another’s improper conduct
Tort
Occurs when a defendant acts recklessly and fails to realize harm caused
Gross negligence
When an unintentional tort and is the most common tort that sport managers encounter
Negligence
A duty of care arises from
Relationships inherit in the situation
Voluntary assumption of the duty of care
Duty mandated by law
Three defenses available to vicarious liability
Employee was not negligent
Employee was not acting within scope of employment
Employee was an independent contractor
Finance refers to two primary activities of an organization
- How an organization generates the funds that flow into that organization
- How these funds are allocated and spent once
they are in the organization
Funds raised by an organization through a variety of sources including tickets, merchandise, services, and sponsorships
Revenues
Funds spent to operate an organization such as
salaries, equipment, utilities, food, travel, and
insurance
Expenses
More revenues than expenses
Profit
Summarizes an organization’s revenues,
expenses, and profits over a given time period
Income statement
Anything an organization owns that can be
used to generate future revenues (facility, equipment)
Assets
