Chapter 13
Public Sector Sport
Quiz Questions
Multiple Choice
1. Of the following, which is a trend impacting financial management in public
sector sport facilities?
a. Demand for services has increased
b. The type and variety of services and facilities have increased
c. Programs are now designed to appeal to a broad demographic
d. All of the above
e. None of the above
2. The pricing paradox related to public sector sport is a result of which of the
following?
a. Affordable pricing for public programs combined with lower tax revenues
b. Providing a multitude of affordable programs
c. Operating as self-sufficient entities
d. Generating revenues to offset expenses not covered by a tax subsidy
e. All of the above combine to create the paradox
3. Land, buildings constructed on land, and improvements made to land are known
as which of the following?
a. Real property
b. Personal property
c. Millage
d. All of the above
e. None of the above
4. What does one mill equal?
a. 1/10 of a dollar
b. 1/100 of a dollar
c. 1/1,000 of a dollar
d. 1/10,000 of a dollar
e. 1/100,000 of a dollar
5. Advertising and sponsorship revenues must be sought by parks and recreation
programs according to which state’s laws?
a. South Carolina
b. Utah
c. Minnesota
d. Michigan
e. Georgia
6. The Billie Jean King National Tennis Center is an example of which type of public-
private partnership model?
a. Public sector leasing
b. Private sector takeover
c. Private sector pump-priming
d. Multiparty arrangement
e. None of the above
7. When taking over the Singer Bowl, what did the USTA offer?
a. To spend a minimum of $5 million at the site
b. To let the city use the facility for 30 days a year
c. To let the city maintain the facility
d. To run the facility as a private tennis facility
e. All of the above
8. Today, the USTA generates __________ through the operation of the Billie Jean
King National Tennis Center for New York City on an annual basis.
a. $400,000
b. $2,500,000
c. $5,000,000
d. 10,000,000
e. None of the above
9. Which of the following is the most common tax source used to fund the
construction and operation of public sector sport facilities?
a. Property tax
b. Sales tax
c. Excise tax
d. Income tax
e. Use tax
10. When selecting the type of bond to use when building a recreation facility, a
municipality must do which of the following?
a. Determine whether the facility will generate enough revenue to retire
the debt
b. Determine whether the facility will generate enough revenue to operate
the facility
c. Determine whether the facility will generate enough revenue to maintain
the facility
d. All of the above
e. None of the above
True/False
1. T or F Public facility authority (PFA) bonds are similar to general
obligation bonds (GOB).
2. T or F For community-based programs, grants are more important for
construction, and fundraising is more important for operations.
3. T or F The second-most-common tax source to fund the construction or
operation of public sector sport facilities is the sales tax.
4. T or F A use tax is a levy imposed on certain goods and services that are
purchased outside a state and brought into the state.
5. T or F The assessed value of property is equal to its fair market value.
6. T or F Public sector sport is offered for its profit potential.
7. T or F Taxes specifically on the sale of sporting goods products is an
example of an excise taxes.
8. T or F A term bond is paid in a single payment at the end of the loan
period.
9. T or F While common, collaboration between organizations for the
financing of new public sector sport facilities is not an economic
necessity.
10. T or F Joint use agreements and public/private partnerships are
collaborations between the public and private sectors.
Answers to Quiz Questions
Multiple Choice