Unit 2 Finance

Unit 2 Finance - The biggest way it affects the company is...

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Zach Holland Sport Finance 1/25/12 Unit 2 What are the three major sections of the balance sheet? Provide at least one example of an item that would be found under each of those sections. 1. Assets- accounts receivable 2. Liabilities- accounts payable 3. Stockholders equity- revenye What is the purpose of computing financial ratios? So that a company can make better decisions and how which areas they need to work on like inventory If you were an investor considering purchasing stock in either Nike or Under Armour, in which company would you purchase stock? Explain and support your answer. I would personally choose Under Armour. I invested in the company for my stock ledger assignment and I like what they have done in the outdoor clothing sector. I feel like Under Armour has a lot more room to grow as a company when compared to Nike. How does risk affect the financial management of sport organizations?
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Unformatted text preview: The biggest way it affects the company is franchise borrowing money. Lower risk franchises have lower interest rates Of MLB, the NBA, or the NHL, which league has the most risk and which has the least? Why? The NFL has the lowest risk. They are the highest revenue producing organization in the U.S. and the number keeps growing. The NBA could be the highest risk because the lockout was a big financial hit and the television rights are done independently. What risk factors should a team consider when deciding whether to build and fund a new venue? How are the risk factors different if a municipality is funding the construction? A team must consider their budget, the risk-free rate, the risk premium, the time period as far as borrowing money goes, and returns. If a municipality is funding the construction there is more of a concern on time rather than their budget....
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