When a New NBA Team Approached the City to Build

question 63

Multiple Choice

When a new NBA team approached the city to build a venue for them to play in, the city agreed but with the requirement that the team stay in the city for at least 25 years and pay $1 million in rent each year for the entirety of the contract. The NBA team declined the contract and found another city who agreed to a 15-year deal. What type of organizational resistance did the team encounter?

• A) interorganizational agreements
• B) organizational culture
• C) organization design
• D) resource limitations

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Definitions:

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing corporation, reducing the amount of outstanding stock on the company’s shareholders’ equity account.

Note Payable

A financial obligation in the form of a written promissory note that specifies the principal amount, interest rate, and due date.

Net Income

A company's final earnings following the deduction of all expenses and taxes from its revenues.

Net Cash Flow

The difference between cash inflows and outflows in a given period, indicating the liquidity position of a business.