Financial & Strategic Management Flashcards
7 cards from real CMP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Financial & Strategic Management flashcards as text
Which strategic planning framework helps a meeting organization assess internal strengths and weaknesses alongside external opportunities and threats?
Answer: SWOT analysis
SWOT analysis evaluates internal Strengths and Weaknesses against external Opportunities and Threats to inform strategic decisions.
An event manager is establishing key performance indicators (KPIs) for an annual conference. Which KPI directly measures financial performance?
Answer: Cost per attendee
Cost per attendee is a direct financial KPI calculated by dividing total event expenses by the number of attendees.
Which accounting principle requires that revenues be recognized when earned, not necessarily when cash is received?
Answer: Accrual basis accounting
Accrual accounting records revenues when they are earned and expenses when incurred, regardless of when cash actually changes hands.
A nonprofit association hosting an annual meeting must ensure that event revenues are used to support the organization's mission. This financial obligation is best described as:
Answer: Fiduciary duty
Fiduciary duty requires those managing an organization's finances to act in the best interest of the entity and its stakeholders.
When an event planner negotiates a multi-year contract with a venue, locking in current pricing protects against which financial risk?
Answer: Inflation risk
Locking in current prices through a multi-year contract shields the organization from future price increases driven by inflation.
Which financial statement shows cash inflows and outflows from operating, investing, and financing activities over a specific period?
Answer: Cash flow statement
The cash flow statement tracks actual cash movement across three activity categories: operating, investing, and financing.
In strategic event management, a 'value proposition' primarily describes:
Answer: The unique benefit an event delivers to its target audience
A value proposition articulates the distinct benefits and value that an event provides to its specific target audience, differentiating it from alternatives.