Financial Management

Question 1

Hosted Buyer

Answer 1

program offers comp travel, accommodation and registration for prequalified buyers to attend an exhibit

Question 2

Secure Digital Certificate

Answer 2

Payment card industry compliance

Question 3

Application Services Providers (ASP)

Answer 3

Online registration companies that offer registration forms, secure sites, cc transaction and auto confirmations

Question 4

Budgeting

Answer 4

process of planning and preparing estimated revenue and expenses in order to achieve the financial goal

Question 5

Sponsor Prospectus

Answer 5

a sponsor benefit package - contains info to assist a prospective sponsor in making a decision

Question 6

Items included in a sponsor prospectus

Answer 6

1. overview/history of event
2. ROI measures
3. Letter for proposal
4. Audience demographics
5. Benefits
6. Terms and conditions

Question 7

Master Account

Answer 7

agreement for credit between the host organization and revenue to be paid directly by the host organization

Question 8

Exhibitor Prospectus

Answer 8

outline of all benefits for the exhibitors and provide important information about the show, attendees & policies

Question 9

Forecast

Answer 9

ability to use historical data to estimate the future number

Question 10

Income Statement

Answer 10

statement of revenues and expenses
AKA profit/loss statement

Question 11

Cash Flow Statement

Answer 11

distinct from the income statement and balance sheet because it DOESN’T include amount of future incoming and outgoing cash that has been recorded on credit

Question 12

3 Methods Determining Cash Flow Statement

Answer 12

1. Core Operations
2. Investing
3. Financing

Question 13

Balance Sheet

Answer 13

statement that indicates overall financial status by subtracting expenses from income
provides bottom line

Question 14

Revenue

Answer 14

total income generated from selling products/services over time

Question 15

Accrual Accounting

Answer 15

system counts income and expenses when they are earned or incurred

Question 16

Cash Accounting

Answer 16

system counts income and expenses as they are actually received and paid

Question 17

7 Common Mistakes

Answer 17

1. allow contingencies of the unexpected
2. include tax and service charge
3. include labor costs
4. communicate clear policies to speakers/staff
5. review master account daily
6. rely on history for meal guarantees
7. know the value of your business

Question 18

Program-Based Budgeting

Answer 18

allocates portions of indirect costs to the event budget

Question 19

Zero-Based Budgeting

Answer 19

when there is no financial history and the budget is created using estimates of anticipated income and expenses

Question 20

Fixed Costs

Answer 20

costs incurred regardless of the number of attendees at event
ie. room rental, insurance, audio visual and signage

Question 21

Variable Costs

Answer 21

costs that vary according to the number of attendees
ie. food and beverages and printed materials

Question 22

Deficit

Answer 22

Expenses < Revenue
ie. Host organization provides funding to meeting

Question 23

Incremental Budgeting

Answer 23

Review past history, preferably last 3 years and compare projected and actual figures from previous budgets

Question 24

Subvention

Answer 24

Common industry practice in the international meetings market. Used where competition is high to attract large congress or events
ie. olympics

Question 25

Value Added Tax (VAT)

Answer 25

added to the product at every step of the process
local sales tax for motes in US
organization can reclaim the difference and the consumer cannot

Question 26

Total Cost

Answer 26

total expenses needed to produce a meeting

Question 27

Profit (net income)

Answer 27

Revenues < Expenses

Question 28

Items included in Exhibitor Prospectus

Answer 28

1. overview/history of event
2. objective of event
3. exhibit floorplan
4. times of setup/breakdown
5. fees and costs
6. list of past exhibits
7. value of participation
8. letter of solicitation
9. audience demographics/ROI measures
10. testimonials
11. pre and post event activities

Question 29

Indirect Costs

Answer 29

overhead or admin line items in a program budget
ie. organization expenses NOT directly related to event
salaries, equipment repair, etc.

Question 30

Budget

Answer 30

statement of estimated revenue and expenses for a specific time