Question

In: Operations Management

what should be the primary financial concerns for a large stadium versus a small fitness facility?

what should be the primary financial concerns for a large stadium versus a small fitness facility?

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Expert Solution

The primary financial concerns are related to the issues of finance and money related to fund their activities. the primary concern for Large stadium is related to the getting long term finance like which building is good and how they can purchase that for large stadium.investing in equipment like machines, chairs etc which are in large quantities which requires too much funds and this creates who the large stadium can source them. they have choice to take bank loans, investing their own money, purchase on credit etc.then another concern is related to funding the maintenance of the infrastructure, payment of staff to maintain the large stadium.

the primary concern for Small fitness facility is related to working capital means short term fund which is required to maintain the daily activities of the small fitness facility like salary to gym trainers, bills,expenses, etc because small fitness facility does not require too much investment in infrastructure but they need funds for daily operations of their activities.


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