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Oakland Baseball Simworld
Test Example

Developed by Sports Business Simulations. The actual test and answer key is available as a download file only if you establish a class (multiple student) account with SBS.

For questions, contact info@sportsbusinesssims.com

Basic Test of Macro Baseball Business Dynamics

This test is designed for with the Oakland Baseball Simworld. It's best to use this test after you have completed various runs of the simulation. The test is multiple choice, and covers all of the situations you will face as you run the sim.

First Question Set: Player Payroll- Related Impact on Team Business Dynamics

The Oakland Baseball Simworld allows you to set any level of total player payroll, low ($30 million to $50 million), middle ($60 million to $80 million) or high (over $80 million). This set of questions is related to how level of payroll impacts other team business dynamics.

1. A High Player Payroll will cause a high Won/Loss record.

  • a. True?
  • b. False?
  • c. It's more likely, but not always the case

2. If you have a High Payroll team, and a poor Won/Loss record, the result is.

  • a. Lower attendance than if the team had a high Won/Loss record
  • b. Possibility of negative Net Operating Income for that year
  • c. Lower attendance, even with more than one "star player."
  • d. All of the above

3. If you have a High Payroll team, and a poor Won/Loss record, causing negative Net Operating Income, the best way to cause a positive Net Operating Income the next year is.

  • a. To raise ticket prices
  • b. To lower the Player Payroll level
  • c. To borrow money
  • d. To increase marketing expenditures
  • e. All of the above
  • f. All except "d"

4. Borrowing money to eliminate a debt if you have a High Payroll team, and a poor Won/Loss record, causing negative Net Operating Income, will..

  • a. Cause an annual debt expense the team has to pay over time.
  • b. Cause Player Payroll to go down

5. Borrowing money to offset negative NOI if you have a High Payroll team, and a poor Won/Loss record, causing negative Net Operating Income, may..

  • a. Lead to a spiral of higher and higher expenses if the team continues to lose
  • b. Allow the maintenance of a strategy of High Payroll for each year in the future.
  • c. All of the above

6. Borrowing money to offset negative NOI if you have a High Payroll team, and a poor Won/Loss record, causing negative Net Operating Income, is best followed with a strategy of..

  • a. Higher ticket prices..
  • b. Lower ticket prices
  • c. Higher or lower ticket prices depending on economic conditions
  • d. Using "Variable Pricing" and having Higher or Lower Ticket Prices depending on economic conditions and the opponent

7. Borrowing money to offset negative NOI if you have a High Payroll team, and a poor Won/Loss record, causing negative Net Operating Income, is best followed with a strategy of not..

  • a. Spending even greater amounts of money in future years without higher ticket prices
  • b. Spending less money
  • c. Spending more money in future years with Lower Ticket prices, regardless of economic conditions

8. Borrowing money to offset negative NOI if you have a High Payroll team, and a poor Won/Loss record, causing negative Net Operating Income, is best followed with a strategy of..

  • a. Getting at least one star player, using Variable Ticket Pricing, and raising expenditures for Player Development
  • b. Trading all star players
  • c. Firing the manager

9. Borrowing money is best done..

  • a. When you have positive NOI and want to increase Player Payroll
  • b. When you have negative NOI and want to increase Player Payroll

10. Rather than borrowing money, an alternative strategy to produce a winning organization is..

  • a. Low Payroll, but High Player Development spending annually
  • b. Low spending for Payroll and Player Development
  • c. High Payroll and High Player Development spending