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82 Cards in this Set
- Front
- Back
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Pro sports leagues are selling a product that blends:
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athletics, business, and entertainment.
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Every Sunday, from September through January, millions of people watch pro football on TV. Why? Because they get a certain amount of pleasure or satisfaction from consuming the NFL's product. It's an example of:
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utility
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In the language of economics, a _____ is an outer limit that can expand or contract.
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margin
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The hometown team has won seven division titles in the past ten years, and yet there are still tickets available for this year's championship series. Which concept helps to explain why the postseason games aren't attracting sellout crowds?
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diminishing marginal utility
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Which team owner was among the first to understand that baseball was competing for fans' entertainment dollars, not just their sports dollars?
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Bill Veeck
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In which sport do specialization and division of labor matter the least?
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figure skating
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Large metropolitan areas provide the _____ that every successful team needs
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concentration of potential fans
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Interaction between buyers and sellers helps to determine _____.
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price levels
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The factory system changed the way people work because it required a sharper division of labor and a greater degree of _____.
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specialization
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Economies of scale
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describes what happens when a company is able to increase the number of units it produces and reduce its per unit production costs.
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real wages
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the quantity of goods and services your paycheck will buy.
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Which of the following events most contributed to the development of the market for pro sports?
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Industrial Revolution
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Economists sometimes refer to material, labor, and capital as _____?
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factors of production
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When a hockey team hires a back-up goalie, it is adding _____.
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a labor input
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capital investment
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Any tool or machine that's used to produce a consumable product or service.
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The generic formula for total revenue is _____.
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Total revenue = (price) x (quantity)
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The main sources of sports revenues are:
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Television agreements, ticket sales, and licensed products
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_____ is the difference between the price a seller charges in a competitive market and the higher price a seller charges for the same product in a monopoly market.
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monopoly rent
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_____ refers to the savings that result from large-scale production.
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economies of scale
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The Sherman Antitrust Act of 1890 was a response to public concern over _____.
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the growing monopoly power of railroads, oil companies, and steel companies
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Which of the following describes a market in which there are a few sellers offering a similar product or service?
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oligopoly
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A father of four told the Boston Globe he often turns down free sports tickets because he still walks out $100 lighter after paying for all the extras. His reluctance is based on:
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the high price of complimentary products
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Demand is most likely to be inelastic for _____.
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medicine with no generic substitute
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Players sell their skills and talents in the _____.
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labor market
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Economists Quirk and Fort use the term _____ to describe the amount of revenue a player would add to a team if he or she were signed to a contract.
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marginal revenue product
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Economists Quirk and Fort believe _____ is responsible for much of the economic tension in pro sports.
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the market power of leagues
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SG&A
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expressed as a percentage of sales: selling, general and admin period costs
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cumulative profit
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net income overtime
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EBIT
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earnings before interest and taxes
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ROS (stands for, formula, means)
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return on sales
formula: net income/sales how much of your sales dollar is profit? |
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turnover
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asset turnover
formula: sales/total assets using your equipment to turn cash into inventory and inventory into sales |
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ROA
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return on assets
formula: net income/total assets |
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leverage
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assets/equity
how good are you at using the owners investment to aquire assets? |
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ROE
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return on equity
net income/owners equity how much profit did you create using the owners investment? |
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stock: book value
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owners equity/number of shares
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stock: EPS
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earnings per share
net income/number share |
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current ratio
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current assets/current liabilities
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quick or acid ratio
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current assets-inventories/current liabilities
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debt to total assets ratio
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total debt/total assets
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cash flow statement
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shows movement of cash in and out of an organization over a given period
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break even
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fixed costs/price-variable costs per unit
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net present value
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compares the value of a dollar today to the value of that same dollar in the future – taking inflation and dollar returns into account.
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marketing mix
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product, price, place, promotion, service
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complement
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number of workers
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caliber
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the talent of the workforce
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benchmarking:
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TQM, reduces admin and inventory carrying costs
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quality function deployment effort
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TQM, reduce cycle time for R&D, increase sales and promo effectiveness
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six sigma
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concurrent engineering, reduces material and labor costs
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common law
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the law that judges establish when deciding disputes
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statutory law
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laws enacted by a federal or state legislature
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administrative law
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regulations passed by state and federal administrative agencies
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criminal law
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a dispute between the gov't and an individual
-- fines or imprisonment |
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civil law
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a dispute between two individuals
-- fines but no imprisonment |
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tort
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-a civil wrong inflicted on other people or their property
-form of negiligence -all wrongs that are not a breach of contract |
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fraud
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-form of tort where someone "hurts" someone else by deception or manipulation
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arbitration
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3rd party "judge"
binding OR non-binding |
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mediation
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3rd party mediator
always non-binding |
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real property
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real estate and everything permanently attached to it
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personal property
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everything else tangible or intangible
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intellectual property
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Property generated by a person’s creative activities
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trademark
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Symbols used by firms to identify products
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patent
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Inventors get exclusive right to inventions
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copyright
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Authors have exclusive rights to documents
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elements of a contract
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legality, consideration, voluntary agreement
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purposes of law of bankruptcy
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1. to give debter a fresh start
2. to repay creditors in an orderly manner |
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federal trade commission
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FTC: false and deceptive advertising and promotion
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the Friedman Doctrine
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the only social responsibility of business is to increase profits, as long as the company stays within the law and the rules of the game without deception or fraud.
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Utilitarian and Kantian Ethics
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Committed to the maximization of good and the minimization of harm.
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rights theory
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Rights establish a minimum level of morally acceptable behavior.
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Sole Proprietorship
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owned and run by one individual and where there is no legal distinction between the owner and the business
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general partnership
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Mutual agency and unlimited liability; share equally the risk/wealth
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limited partnership
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No mutual agency, no unlimited liability; don’t share the risk/wealth equally
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domestic corporation
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operates in state in which it is incorporated
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foreign corporation
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operates in states other than state of incorporation
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alien corporation
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organized in one country, operates in another
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s corporations
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Limited liability, single taxation; unlimited life restrictions: number & type of shareholders
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limited liability companies
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Limited liability of corporation, taxed like partnership, not limited to number of shareholders;
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preferred stock
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- No vote
- First claim on income – preferred dividend First claim on assets after debt |
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common stock
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- Voting rights (proxy)
- Residual claims to assets |
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horizontal acquisition
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One firm buys another from same industry
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vertical acquisition
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One firm buys another in distribution channel (producer-distributor)
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conglomerate acquisition
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One firm buys another unrelated business
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