SM Midterm Part 1

Flashcards covering personal finance basics, credit, fitness industry trends, revenue sources, and expenses in amateur youth sports.

What is a traditional 401(k) account as described in the personal finance basics notes?

An employer-sponsored defined contribution pension account where employee funding comes directly off their paycheck pretax and may be matched by the employer.

What are the tax features and withdrawal age rules governing a Roth 401(k)?

It is an employer-sponsored savings plan where employees invest after-tax dollars. Withdrawals taken after age $59\frac{1}{2}$ are tax-free provided the account has been funded for at least $5\,\text{years}$.

How is an asset defined, and what examples are listed in the notes?

An asset is any resource owned by a business or an economic entity. Examples include a house, car, businesses, and education.

What six considerations affect individual financial decisions according to the notes?

Age, income level, family situation, credit history, risk tolerance, and economic outlook.

What are the three credit bureaus identified in the lecture notes?

Experian, Transunion, and Equifax.

What is the difference between a soft credit check and a hard credit check?

A soft check does not affect credit, whereas a hard check does affect credit.

What external issues outside a sport organization's control can impact its operations?

Political changes, wars, interest rates, sponsors' budgets, and technological changes.

What are the five essential strategies listed for personal and sport organization financial success?

1. Know your numbers, 2. Measure it twice… Cut once, 3. Plan, plan, and plan, 4. Always be prepared, 5. Honesty counts.

What are the statistics regarding U.S. fitness facilities and industry employment?

There are an estimated over $93,000$ fitness facilities in America (over $205,000$ worldwide) and over $976,000$ people employed in the U.S. fitness industry (previously $800,000$).

What were the statistics for U.S. health club membership and industry revenue before the pandemic versus current revenue?

Before the pandemic, $64.2\,\text{million}$ Americans belonged to at least one of $41,370$ health clubs nationwide. The industry yearly revenue was $27.6\,\text{billion}$, which is $45\,\text{billion}$ now.

What business model did Curves attempt, and what financial obligation can closing clubs still face?

Curves attempted a one-size-fits-all experience to serve women with specific programs and hours. When clubs close, they could still be on the hook for money owed to Curves to cover lost future royalties.

How is net worth defined in the lecture?

Net worth is what is owned minus what is owed.

What are the primary revenue sources for amateur and participatory sports?

Sponsorships, membership fees, registration fees, and tax subsidies.

How are tax subsidies defined in the context of amateur sport revenues?

Direct or indirect payment to individuals or firms, usually in cash payment from the government or a targeted tax cut, by paying for part of the cost of the production of a good or service by offering tax credits or reimbursements or by paying part of the consumer cost.

What expenses and opportunities are shown in the lecture notes image regarding amateur youth sports?

Expenses at the amateur youth sports level often go to field and facility expenses, uniforms, equipment, and travel-related expenses. Fundraising opportunities and social events are also listed.