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SM 486 Exam 2 Questions and Correct
Answers/ Latest Update / Already Graded
What are the key financial management tasks in facility financing?
Ans: Recording, monitoring, and controlling the financial
consequences of past and current operations, and acquiring
funds to meet current and future needs.
How much do the NY Giants and Jets expect to earn annually from
advertising and premium seats?
Ans: $184 million.
What is the expected annual income from corporate sponsorships for
the NY Giants and Jets?
Ans: $35 million.
How much do the NY Giants and Jets plan to finance the construction
of their new stadium?
Ans: About $1 billion.
What was the total expenditure by Ohio State University on sports
facilities in 2003?
All rights reserved © 2025/ 2026 |
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Ans: More than $300 million.
What was the cost breakdown for the Ohio State University football
stadium renovations?
Ans: $190 million for luxury boxes, $110 million for
basketball/hockey arena, and $10 million for a new track and
field stadium.
What was the total cost to build Florida Atlantic University's football
stadium?
Ans: $69.8 million.
What is the estimated cost for building or renovating recreational
facilities managed by NIRSA members over the next five years?
Ans: $4.9 billion.
Why is cash flow important for facility managers?
Ans: It shows the ability to meet future debt obligations that
may finance the facility.
What are compulsory income sources for public facilities?
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Ans: Funds secured through taxes, licensing, or other
government-generated sources.
What is gratuitous income?
Ans: Income received with no expectation of return, such as
gifts and donations.
What is the primary motive for commercial organizations in facility
financing?
Ans: Profit generation.
What are the characteristics of public sector financing for parks and
recreation?
Ans: Operates at a loss, funded by taxation, and limited
accountability for budget deviations.
What is the structure of a not-for-profit organization like the YMCA?
Ans: Board → Executive Officer → Finance Department.
What is the role of the facility financial team?
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Ans: Includes facility manager/staff, business plan consultant,
architect, construction manager, and legal counsel.
What are the types of public funding sources for sports facilities?
Ans: Taxes, bonds, and tax increment financing (TIF).
What is a bond in the context of facility financing?
Ans: An interest-bearing certificate issued by a government or
corporation promising to pay back the principal with interest at
a future date.
What are general obligation bonds?
Ans: Guaranteed bonds backed by the full faith of the issuing
body, often requiring a vote.
What are revenue bonds?
Ans: Bonds sold based on repayment from revenue sources,
often with higher interest rates and no requirement for a
reserve fund.
What is the purpose of Certificates of Participation (COPs)?
All rights reserved © 2025/ 2026 |
SM 486 Exam 2 Questions and Correct
Answers/ Latest Update / Already Graded
What are the key financial management tasks in facility financing?
Ans: Recording, monitoring, and controlling the financial
consequences of past and current operations, and acquiring
funds to meet current and future needs.
How much do the NY Giants and Jets expect to earn annually from
advertising and premium seats?
Ans: $184 million.
What is the expected annual income from corporate sponsorships for
the NY Giants and Jets?
Ans: $35 million.
How much do the NY Giants and Jets plan to finance the construction
of their new stadium?
Ans: About $1 billion.
What was the total expenditure by Ohio State University on sports
facilities in 2003?
All rights reserved © 2025/ 2026 |
, Page |2
Ans: More than $300 million.
What was the cost breakdown for the Ohio State University football
stadium renovations?
Ans: $190 million for luxury boxes, $110 million for
basketball/hockey arena, and $10 million for a new track and
field stadium.
What was the total cost to build Florida Atlantic University's football
stadium?
Ans: $69.8 million.
What is the estimated cost for building or renovating recreational
facilities managed by NIRSA members over the next five years?
Ans: $4.9 billion.
Why is cash flow important for facility managers?
Ans: It shows the ability to meet future debt obligations that
may finance the facility.
What are compulsory income sources for public facilities?
All rights reserved © 2025/ 2026 |
, Page |3
Ans: Funds secured through taxes, licensing, or other
government-generated sources.
What is gratuitous income?
Ans: Income received with no expectation of return, such as
gifts and donations.
What is the primary motive for commercial organizations in facility
financing?
Ans: Profit generation.
What are the characteristics of public sector financing for parks and
recreation?
Ans: Operates at a loss, funded by taxation, and limited
accountability for budget deviations.
What is the structure of a not-for-profit organization like the YMCA?
Ans: Board → Executive Officer → Finance Department.
What is the role of the facility financial team?
All rights reserved © 2025/ 2026 |
, Page |4
Ans: Includes facility manager/staff, business plan consultant,
architect, construction manager, and legal counsel.
What are the types of public funding sources for sports facilities?
Ans: Taxes, bonds, and tax increment financing (TIF).
What is a bond in the context of facility financing?
Ans: An interest-bearing certificate issued by a government or
corporation promising to pay back the principal with interest at
a future date.
What are general obligation bonds?
Ans: Guaranteed bonds backed by the full faith of the issuing
body, often requiring a vote.
What are revenue bonds?
Ans: Bonds sold based on repayment from revenue sources,
often with higher interest rates and no requirement for a
reserve fund.
What is the purpose of Certificates of Participation (COPs)?
All rights reserved © 2025/ 2026 |
