HMGT 450 ACTUAL EXAM SCRIPT 2026
COMPREHENSIVE QUESTIONS AND
ANSWERS
◉ What makes parks and attractions economic engines?
Answer: They attract non-resident visitors who bring NEW money
into the community.
◉ Why are economic impact studies important?
Answer: They justify community investments by showing how
money flows into and through the local economy.
◉ What are the key factors in growing a business?
Answer: Demand, resources (employees, management), and
opportunities for expansion.
◉ What is shareholder value creation?
Answer: Increasing a firm's market value by raising stock prices and
earnings per share.
◉ What is the difference between public and private company
growth strategies?
, Answer: Public: Focus on increasing stock prices, earnings per share.
Private: Focus on increasing cash flow and owner returns.
◉ What are the benefits of business growth?
Answer: More career opportunities, greater market share, reduced
competition, and risk diversification
◉ What is debt financing?
Answer: Raising funds through bank loans, bonds, and private debt
funds.
◉ What is equity financing?
Answer: Raising funds by selling ownership shares, using investors
like venture capitalists or crowdfunding.
◉ What is the difference between mandatory and discretionary
programs?
Answer: mandatory: Required by law (e.g., Social Security,
Medicare).
Discretionary: Requires annual approval (e.g., defense, education).
◉ What happens when expenditures exceed revenue?
Answer: A budget deficit occurs.
COMPREHENSIVE QUESTIONS AND
ANSWERS
◉ What makes parks and attractions economic engines?
Answer: They attract non-resident visitors who bring NEW money
into the community.
◉ Why are economic impact studies important?
Answer: They justify community investments by showing how
money flows into and through the local economy.
◉ What are the key factors in growing a business?
Answer: Demand, resources (employees, management), and
opportunities for expansion.
◉ What is shareholder value creation?
Answer: Increasing a firm's market value by raising stock prices and
earnings per share.
◉ What is the difference between public and private company
growth strategies?
, Answer: Public: Focus on increasing stock prices, earnings per share.
Private: Focus on increasing cash flow and owner returns.
◉ What are the benefits of business growth?
Answer: More career opportunities, greater market share, reduced
competition, and risk diversification
◉ What is debt financing?
Answer: Raising funds through bank loans, bonds, and private debt
funds.
◉ What is equity financing?
Answer: Raising funds by selling ownership shares, using investors
like venture capitalists or crowdfunding.
◉ What is the difference between mandatory and discretionary
programs?
Answer: mandatory: Required by law (e.g., Social Security,
Medicare).
Discretionary: Requires annual approval (e.g., defense, education).
◉ What happens when expenditures exceed revenue?
Answer: A budget deficit occurs.
