2005 DECA Ontario December Provincials
Test 867 SPORTS AND ENTERTAINMENT TEAM DECISION MAKING 9
1. Businesses in trade industries that offer discount prices usually offer
A. plush interiors. C. limited services.
B. full services. D. elaborate fixtures.
2. Marketing helps to create and stimulate demand for products through the marketing activity known as
A. distribution. C. pricing.
B. promotion. D. research.
3. What must be present for a sporting event to take place?
A. Spectators C. Amateurs
B. Professionals D. Athletes
4. Promoting and selling an intangible product that is immediately consumed and cannot be resold is a unique characteristic of ______marketing.
A. direct C. target
B. mass D. event
5. Which of the following activities consumes most of a sporting goods buyer's time:
A. Merchandise pricing C. Promotion
B. Merchandise selection D. Sales force management
6. What category of a profit-and-loss statement indicates a sport/event business's total profit?
A. Gross profit C. Cash flow
B. Bottom line D. Net profit
7. What type of information about equipment is important for sport organizations to keep in their records?
A. Serial numbers C. Inventory status
B. Mechanical repairs D. Production process
8. Jean, Keisha, and Kyle want to start their own sporting goods store but are concerned about the higher tax rate for corporations as well as the dual taxation on corporate profits and dividends paid to stockholders. What type of business ownership should they consider?
A. Close corporation C. Open corporation
B. Partnership D. "S" corporation
9. Which of the following is the most appropriate response for a baseball stadium employee to make when s/he discovers a safety hazard:
A. Avoid the location of the hazard. C. Determine the cause of the hazard.
B. Report or correct the hazard. D. Record the hazard and its location.
10. Which of the following is an unacceptable place to use an athlete's or celebrity's identity without his/her permission:
A. On the news C. In a book
B. In a magazine D. On your company's advertisements
11. The primary reason that sport regulatory bodies enforce rules is to
A. create a sense of fairness and maintain equitable opportunities among all member organizations.
B. protect the academic integrity of other institutions associated with the sport organizations.
C. reduce the need for member organizations to maintain institutional governing bodies.
D. eliminate the risk of athlete misconduct and lawsuits brought forth by athletes who are seriously injured.
12. Which of the following is a question that the Americans with Disabilities Act prohibits event planning companies from asking potential employees:
A. Can you perform the job functions? C. Can you work the required hours?
B. What type of training do you have? D. What prescription drugs do you take?
13. A sports memorabilia shop that owed state sales tax of $6,459.00 was late in reporting and paying the tax. If the penalty for late payment is 10% of the taxes due, what is the total amount the sport memorabilia shop owes?
A. $7,203.90 C. $6,325.95
B. $6,523.59 D. $7,104.90
14. A recommended way to find out why the caller has phoned the TUV University's athletic department is to
A. ask the caller, "What did you want?" C. ask the caller, "How may I help you?"
B. wait for the caller to ask questions. D. answer promptly with a friendly greeting.
15. Managers who work for sport/event organizations often receive brief summaries of information about the status of activities within their departments in the form of ______reports.
A. simple progress C. detailed annual
B. long research D. short biographical
16. In the sport/event industry, which of the following is a guideline for employees to use in communicating with coworkers:
A. Think about what they want to say before they say it
B. Feel free to express their complaints about their jobs
C. Be sure to share rumors and gossip with their coworkers
D. Use a direct approach in speaking to an angry coworker
17. One of the ways demand for a sporting good affects its distribution is through the
A. laws that affect distribution. C. special handling that is required.
B. use of computerized inventory control. D. decisions about storage.
18. What is the most common channel of distribution for large industrial goods?
A. Producer to agent to industrial user distributor to user
B. Producer to industrial distributor
C. Producer to agent to user
D. Producer to industrial user
19. Increased bandwidth will allow television viewers and computer users to
A. provide data to marketers enabling them to advertise products of special interest.
B. assure their rights to privacy when viewing programs and using the Internet.
C. participate in televised programming and determine the outcome.
D. swipe a card on the television/computer to customize what they see and hear.
20. Why does a stadium gift shop utilize computerized scanning technology to control inventory?
A. To count inventory once per year
B. To have automatic replenishment
C. To manage volumes of inventory statistics
D. To conduct manual counts for determining inventory levels
21. A dominant sporting goods retailer that threatens to stop utilizing a supplier unless it is granted unreasonably low prices is guilty of ______behavior.
A. coercion and illegal C. legal and ethical
B. unethical and illegal D. coercion and unethical
22. Dating terms on an invoice such as 2/10, net 30 entitle an arena gift shop to take advantage of a discount for paying early. This discount applies to
A. the entire balance of the invoice. C. shipping and handling only.
B. merchandise, sales tax, and shipping. D. merchandise only.
23. Moving a sport/event product to market and making it available and accessible to customers are important activities that influence the rest of the
A. product mix. C. promotional plan.
B. marketing mix. D. merchandise plan.
24. Which of the following is a factor that a sport/event business should consider when selecting a channel of distribution:
A. Size of sales force C. Credit policy
B. Return process D. Type of product
25. What type of utility is created when a sporting goods store sells a basketball to a customer?
A. Possession C. Production
B. Convenience D. Satisfaction
26. Which of the following is an example of a tax that the government collects from some sport/event businesses:
A. Excise C. Bond
B. Subsidy D. Discount
27. Which of the following would probably result if monopolies were allowed to operate without regulation:
A. More businesses from which to buy C. More product improvements
B. Wider assortment of products D. Higher prices
28. What effect does a decrease in overall productivity usually have on the economy?
A. Lower prices C. Increased labor costs
B. Increased sales D. Decreased unemployment
29. When professional athletes negotiate salaries, playing conditions, and contract terms as a single unit, their union is engaging in
A. free agency. C. collective bargaining.
B. labor resistance. D. competitive advantage.
30. What usually decreases as the rate of inflation increases?
A. Export quotas C. Purchasing power
B. Interest rates D. Money supply
31. One step that a government might take to reduce its trade deficit would be to
A. adjust interest rates. C. eliminate tariffs.
B. increase the amount of imports. D. decrease the amount of exports.
32. An internal source of marketing information for a sport/event business would be
A. public libraries. C. inventory records.
B. government planning agencies. D. trade journals.
33. A sport/event organization might benefit from using a marketing decision support system to manage certain types of marketing-information because it is designed to
A. assign valuation codes to written external data.
B. analyze a variety of factors for problem resolution.
C. select reliable raw data from Internet sources.
D. administer surveys to people who meet appropriate qualifications.
34. To know what web sites and advertisements visitors see, sports and event e-marketers would check
A. direct delivery programs. C. text files.
B. clickstream data. D. Internet service providers.
35. Which of the following is a secondary source of sport/event information:
A. Demographic reports C. Accounting records
B. Computerized surveys D. Personal interviews
36. When developing procedures to monitor internal marketing-information records, sport/event marketers should develop a regular timetable to ______the accuracy of certain data.
A. administer C. rate
B. verify D. estimate
37. Which of the following is an example of range:
A. Most consumers attend five concerts per year.
B. Consumers attend an average of six concerts per year.
C. Consumers attend between four and eight concerts per year.
D. Half of all consumers attend more than four concerts per year.
38. One of the main portions of a marketing report describes the data collection procedures and the
A. local regulations. C. preliminary costs.
B. writing styles. D. research methods.
39. A marketing director is designing the marketing strategy for a new line of high-performance treadmills. The marketing director believes that providing a five-year warranty will increase sales. The marketing director is making a ______decision in the marketing mix.
A. product C. place
B. price D. promotion
40. Which of the following represents division of a market on the basis of consumers' lifestyles and personalities:
A. Demographic segmentation C. Geographic segmentation
B. Psychographic segmentation D. Behavioral segmentation
41. Determine a hockey team's ticket sales forecast for next year based on the following information: This year's ticket sales are expected to be $425,000, which is 6% higher than the previous year, and the same amount of growth is projected for next year.
A. $452,625 C. $446,250
B. $448,375 D. $450,500
42. An objective of a professional soccer team's marketing plan is to increase ticket sales by increasing the amount spent on promotion. If current ticket sales are $2,350,750 and the soccer team spends 7% of that on promotion, how much more will it spend if it increases the promotional budget to 9%?
A. $48,975 C. $47,015
B. $46,350 D. $49,230
43. Kelly doesn't believe that she will get anywhere in life, and she often lashes out at others. Kelly has a ______attitude.
A. mature C. defeatist
B. positive D. superior
44. The interaction of people is referred to as human
A. behavior. C. conduct.
B. resources. D. relations.
45. Which of the following would most benefit from a customer-service mindset that helps to reduce complaints and increase profits:
A. Employees C. Sport/Event fans
B. Sport/Event businesses D. Competitors
46. What should you do when you greet customers courteously but are answered rudely?
A. Remain positive and pleasant with them.
B. Walk away, and wait for them to come to you.
C. Answer rudeness with rudeness.
D. Stay with the customers, and try to talk with them.
47. When developing a project plan, what do athletic departments need to identify in order to achieve the objectives of the plan?
A. Necessary steps C. Simple rules
B. Realistic goals D. Formal systems
48. As manager of event services, you are responsible for terminating a long-time employee whose position is being eliminated due to changes in technology. The best way to handle this situation is to
A. explain the situation in such a way that is not threatening.
B. write the employee a dismissal letter.
C. offer to help the employee find another job.
D. ask the employee to assist in the training of a replacement.
49. One of the major objectives of employee orientation is to
A. increase employee turnover. C. evaluate the hiring decision.
B. reduce anxiety for new employees. D. determine training needs.
50. Which of the following is a benefit of manager/supervisor training and development:
A. Decreased performance levels C. Decreased personnel costs
B. Increased managerial obsolescence D. Increased employee turnover
51. Careful handling of athletic equipment by athletes helps to prevent damage and control
A. expenses. C. theft.
B. usage. D. overtime.
52. Calculate the amount that a treadmill company will save over a five-year period if it declines the house-call option on a service contract which is a feature that adds 30% a year to the base price of $500.
A. $500 C. $300
B. $750 D. $1,500
53. Which of the following is a tool that professional football organizations need to develop in order to have good financial planning:
A. Survey C. Chart
B. Policy D. Budget
54. Calculate the amount a sporting goods store's monthly income increased or decreased from the amount budgeted based on the following information: budgeted $405,000 in sales, with 62% of that amount for expenses, compared to actual sales of $450,500, with 65% of that amount spent on expenses.
A. $4,005 increase C. $1,565 decrease
B. $2,405 decrease D. $3,775 increase
55. In order to meet the needs of its market, a professional hockey team must study local demographics which are the
A. physical/social characteristics of the population.
B. current and predicted economic conditions.
C. trends in technological advances.
D. government regulations that apply to the industry.
56. Which of the following should you do when you fail to reach a goal:
A. Give up goal-setting. C. Congratulate yourself.
B. Find someone to blame. D. Find out what went wrong.
57. The use of technology often affects the pricing process by ______prices.
A. lowering C. fixing
B. maintaining D. increasing
58. Which of the following is a true statement about selling prices:
A. Selling prices are easy for sport/event businesses to determine.
B. There are many kinds of selling prices for sport/event goods and services.
C. Selling prices for sport/event products remain the same over time.
D. Few professional sport/event organizations need to set selling prices.
59. Which pricing strategy sets prices lower than those of the competition?
A. Smoothing C. Penetration
B. Stretching D. Skimming
60. Idea generation, prototype development, and test marketing are activities associated with which marketing function?
A. Product life cycle C. Risk management
B. Product/Service management D. Marketing-information management
61. What is one question that a sport/event business needs to answer about a product that is in the introductory stage of its life cycle?