Deck 6: Financial Management and the Budget

Question 1

If the event objective is quality rather than profitability, then:

A)over-concentration on costs might well damage the success of the event.
B)a sponsor is needed.
C)the organiser should create a profit-focus team.
D)the organiser should create a quality-focus team.

Answer 1

A

Question 2

The financial objective in an organisational event could be:

A)to keep within the budgeted cost.
B)to spend the most.
C)to make profits.
D)maximum profit.

Answer 2

A

Question 3

The event-coordinator is the individual who:

A)manages the staff on behalf of the client.
B)manages the client on behalf of the event.
C)manages an event on behalf of the client.
D)manages the staff on behalf of the event.

Answer 3

C

Question 4

A major issue for event organisers is to know:

A)approximate number of employees.
B)the suppliers' contact details.
C)how many people will attend.
D)the budget for entertainment.

Question 5

A budget helps to:

A)regulate the operation of an event over a given period of time.
B)understand hidden expenses.
C)structure a list of expenses.
D)divide fairly income and outcome for all tasks.

Question 6

Budgeting is a method of controlling expenses and costs because:

A)it helps to establish clear lines of who can or cannot spend money.
B)it helps to clarify certain amounts.
C)managers find it more convenient.
D)it helps to increase profits.

Question 7

If a department has a budget, normally the authority to spend it has to be:

A)the head of department.
B)the CEO.
C)the customers.
D)the financial manager.

Question 8

It is important to remember that a large number of events have a predetermined budget because:

A)the event is not intended to raise money.
B)the event has small number of attendees.
C)it is much easier.
D)many managers prefer this approach.

Question 9

Where there is more than one sponsor, respective areas of promotion are covered in:

A)the sponsorship agreement.
B)the sponsorship plan.
C)the sponsorship programme.
D)the sponsorship bid.

Question 10

The financial objective in a village cultural festival could be:

A)to make enough money to break even.
B)to make over 10,000 pounds.
C)to save most of the money.
D)to make maximum profit.

Question 11

In the case of different types of events there might be:

A)different pricing of tickets.
B)similar pricing of tickets.
C)exactly same pricing of tickets.
D)some free tickets.

Question 12

One key to the effective financial management of events is:

A)the appointment of someone from external organisation.
B)to increase training.
C)more funding.
D)the appointment of someone responsible for it.

Question 13

Ignoring the objectives of the event when setting the budget is:

A)a possible opportunity to change objectives the last minute.
B)a possible opportunity to invest time in other efforts.
C)one of the common budgeting mistakes.
D)a strategic plan.

Question 14

The issue of ticket prices is:

A)an irrelevant distraction.
B)an occasional source of debate.
C)an occasional distraction.
D)a frequent source of heated debate.

Question 15

The event coordinator manages an event on behalf of a:

A)manager.
B)head of a financial department.
C)client.
D)local government.

Question 16

Fundraising activities might be:

A)a requirement.
B)an opportunity to meet volunteers.
C)an alternative income for an event.
D)difficult to manage.

Question 17

Good financial management is important to an event:

A)even those planned as not-for profit.
B)only for those planned to make a profit.
C)to stay within the law.
D)to keep stakeholders happy.

Question 18

A budget is a financial guide; it should result in:

A)better coordination between the organisers of the event.
B)spending less.
C)building better relationships with suppliers in the market.
D)finding better quality of volunteers.

Question 19

Contribution-pricing is when:

A)guests pay what they can.
B)fixed costs are covered and contribute to variable costs.
C)the price covers variable costs and contributes to fixed costs.
D)guests pay what they feel the event is worth.

Question 20

Some costs are fixed, for example the price of a marquee is the same:

A)whatever the number of people that attend.
B)after negotiations.
C)whatever it is being used for.
D)whatever the weather.