Chapter 11
Feasibility Studies
Quiz Questions
Multiple Choice
1. Without the benefit of having a feasibility study, the public in which city was asked to
vote to spend $143 million of public money to build the Sprint Center without a major
tenant?
a. St. Louis
b. Milwaukee
c. Des Moines
d. Kansas City
e. Topeka
2. Of the following, which is a main part of a feasibility study?
a. Market demand
b. Economic and fiscal impact
c. Financing
d. Location, construction costs, and engineering
e. All of the above
3. As part of a feasibility study, __________ directly investigates actual facilities that might
compete with a subject facility in order to host events.
a. A financing analysis
b. A comparables analysis
c. A competitive analysis
d. Primary research
e. None of the above
4. When determining market demand for a facility, one must examine which of the
following?
a. Individual ticket demand
b. Corporate demand
c. Event activity
d. Facility specifications and operating estimated
e. All of the above
5. Which section of the feasibility study drives much of the rest of the study?
a. Market demand
b. Economic and fiscal impact
c. Financing
d. Location, construction costs, and engineering
e. All of the above
6. Which section of the feasibility study determines the luxury seating capacity of a
market?
a. Individual ticket demand
b. Corporate demand
c. Event activity
d. Facility specifications
e. All of the above
7. Factors examined in which part of the feasibility study include population, age, income,
and competing sports franchises?
a. Individual ticket demand
b. Corporate demand
c. Event activity
d. Facility specifications and operating estimates
e. All of the above
8. In which section of the feasibility study are the needs of attendees and event property
owners calculated?
a. Individual ticket demand
b. Corporate demand
c. Event activity
d. Facility specifications and operating estimates
e. All of the above
9. In which section of the feasibility study does one determine if there is sufficient revenue
to pay for facility financing costs?
a. Individual ticket demand
b. Corporate demand
c. Event activity
d. Facility specifications and operating estimates
e. All of the above
10. If facilities are successful in various similar cities, then a facility will be successful in the
subject city. Where does this notion comes from?
a. A financing analysis
b. A comparables analysis
c. A competitive analysis
d. Primary research
e. None of the above
11. For a recreation facility such as a water park, which of the following factors is not likely
to be part of the feasibility analysis?
a. Age of local population
b. Income of local population
c. Size of local population
d. Price of admission
e. Number of corporations of a certain size in the area
True/False
1. T or F Feasibility studies in sport can be used to determine whether a city
should bid to host a major sporting event.
2. T or F Feasibility studies are often broken into three phases.
3. T or F The findings of one section of a feasibility study will affect or be affected
by the findings of the other sections.
4. T or F Primary research typically involves the analysis of data that have already
been generated for other purposes but might provide information for the
question at hand.
5. T or F Comparables analysis is a type of primary research.
6. T or F The age of the population is another factor to consider when analyzing
ticket demand in comparable markets.
7. T or F In the NBA, more than 50% of season ticket holders are corporations.
8. T or F Naming rights are the largest single sponsorship revenue source for a
sport facility.
9. T or F Facility revenues are typically kept by the facility owner.
10. T or F Feasibility studies require the application of many finance tools.
11. T or F Sport facilities compete against one another for corporate dollars.
Answers to Quiz Questions
Multiple Choice
True/False