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Fitness Management Exam #3
Fitness Management Exam #3 Flash Cards
29
Fitness
Undergraduate 1
04/11/2011

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Cards

Term
Sole Proprietorship
Definition
A business run mainly by one person. That person bears all of the costs and liability but also receives all of the revenue.
Term
Partnership
Definition
A business run by two to four people. The liabilities and costs are split equally.
Term
General Partnership
Definition
A partnership where the liabilities, costs, and profits are split equally between the partners.
Term
Limited Partnership
Definition
A partnership in which there are partners who have limited liabilities, limited ownership of the business, and limited revenue from the business.
Term
Corporation
Definition
A business in which there are many people involved. The corporation has an entity of its own.
Term
Greatest Sources of Fitness Center Revenue
Definition
Memberships, Personal Training, Group Exercise, Concessions.
Term
Greatest Sources of Fitness Center Expenses
Definition
Equipment, Rent/Lease, Utilities, Payroll.
Term
Departmental Expenses
Definition
An expense that applies only to a certain department within a fitness center.
Term
Departmental Revenue
Definition
Revenue that is generated only from a certain department within a fitness center.
Term
How does one increase Revenue?
Definition
Expand (multiple locations), increase membership price, offer more services and products.
Term
Multi-Club Operations: Pros
Definition
Operating multiple clubs will ultimately increase revenue and profit by expansion and attracting new members.
Term
Multi-Club Operations: Cons
Definition
Multi-Club operations can be hard to keep track of and you will not know what is going on at all times at each location.
Term
Mission Statements
Definition
This is what the aim or goal of the gym is. It goes along with the theme.
Term
Theme
Definition
The general idea of the gym. This basically determines what members you will have. i.e. Gold's Gym = Heavy Lifters, Yoga Fitness Center = Mostly Female, Cardio + Flexibility.
Term
Promise
Definition
Obviously, what the gym can and will do for you, given the chance.
Term
Ways to Purchase a Club/Fitness Business
Definition
Buy the assets of the business, or buy the assets and building/land.
Term
Pros and Cons of Buying the Assets
Definition
You do not own the building and will have to pay a monthly rent or lease payment. You do, however, make smaller payments as opposed to dropping a large sum.
Term
Pros and Cons of buying the business + building/land
Definition
You will have to drop a larger total amount and once you buy it, you're stuck with it. You do, however, now own the building and have the option of selling it or leasing/renting it out to somebody else.
Term
Balance Sheets
Definition
A sheet that balance's the owner's assets, liabilities, and equity.
Term
Assets =
Definition
Liabilities + Owner's Equity. Equipment, the bulding, cash, etc.
Term
Liabilities
Definition
Rent, lease payment, utilities, etc.
Term
Liabilities + Owner's Equity = ?
Definition
Assets
Term
Current Ratio
Definition
Liquidity within 12 months, current assets/current liabilities.
Term
Debt-To-Equity Ratio
Definition
Total Liabilities/Total Owner's Equity.
Term
Acid Test Ratio
Definition
Assets - Inventry - prepaid expenses / liabilities.
Term
Return on Fixed Assets
Definition
Profitability of Business / Current Fixed Assets
Term
What are the 6 Profit and Loss Statements
Definition
Revenues, Departmental Expenses, Undistributed Expenses, Fixed Exoenses, EBITDA, AND EBIT.
Term
EBITDA
Definition
Earnings Before Interest, Taxes, Depreciation, and Amortization.
Term
EBIT
Definition
Earnings before Interst and Taxes
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