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BUSI 409 Final exam, Nonprofit Management: Principles and Practice (2017)

Question 1 6 out of 6 points
Historically, many NGOs had centralized structures that were pushed out to chapters as they were
established, but as growth extends into more geographically remote regions and diverse national and
cultural settings, there is a trend toward for regional chapters or affiliates.
Selected Answer: greater autonomy
Question 2 6 out of 6 points
Which type of relationship is not a nonprofit-corporate relationship?
Selected Answer: Lobbyin
Question 3 6 out of 6 points
Economist Burton Weisbrod wrote in the Stanford Social Innovation Review that Congress should:
Selected Answer: discourage nonprofits from undertaking business ventures.
Question 4 6 out of 6 points
In this stage of the life cycle of a social change issue, analysts and advocates look at the data and
consider how the problem might be addressed.
Selected Answer: Stage 4
Question 5 6 out of 6 points
This is a formal, written document that states the mutual understandings of the donor and the
Selected Answer: Gift agreement
Question 6 6 out of 6 points
The nonprofit organization Year Up provides young people:
Selected Answer: job experience.
Question 7 6 out of 6 points
A detailed, comprehensive document that encompasses elements of strategic, marketing, business, and
operational plans organization is called a:
Selected Answer: business plan.
Question 8 6 out of 6 points
This is an activity undertaken with the goal of eliciting charitable or philanthropic giving.
Selected Answer: Fundraising
Question 9 6 out of 6 points
are required to expend a minimum of an amount equivalent to five percent of the
value of their invested assets each year, for either grants or operating expenses.
Selected Answer: Foundations
Question 10 0 out of 6 points
Starting in the 1980s, the U.S. federal government uses __ that give state officials the flexibility
to decide how to delegate the funds.
Selected Answer: flexibility grants
Question 11 6 out of 6 points
This is income from payment for goods or services that the nonprofit has provided.
Selected Answer: Earned
Question 12 6 out of 6 points
These are established by the governing board, and they may identify allowable ranges for specific

financial indicators or ratios, for example, liquidity, debt, or assets held in the endowment fund.
Selected Answer: Financial and financial management
Question 13 0 out of 6 points
Global governments are likely to see social entrepreneurships as:
Selected Answer: a tool for developing socialistic
Question 14 6 out of 6 points
Although research has indicated that nonprofits actually lobbying as government becomes a
more predominant source of their revenue, concern about alienating government foundation funders is
a barrier for some.
Selected Answer: increas
Question 15 6 out of 6 points
In June 2007, the IRS released a to clarify the criteria by which it would determine what
is and is not illegal campaign involvement; this included 21 hypothetical examples of activity and a
discussion of why each does or does not constitute a violation of the law.
Selected Answer: Revenue ruling
Question 16 6 out of 6 points
Identifying individuals, foundations, and corporations who are prospects of giving is a task often
performed by professionals engaged in
Selected Answer: prospect research.
Question 17 6 out of 6 points
The trend is for global nonprofit organizations to _ policies and operations.
Selected Answer: decentraliz
Question 18 6 out of 6 points
Researchers have found that performance-based contracts have increased the power of:
Selected Answer: nonprofit CEOs.
Question 19 6 out of 6 points
In this process, all programs and departments start at zero at the beginning of each year’s budget
process and need to justify their budgets from the ground up.
Selected Answer: Zero-based approach
Question 20 6 out of 6 points
The principal of how an asset’s value declines over time is called:
Selected Answer: depreciation.
Question 21 0 out of 6 points
Two terms used to describe long-term and broad-based fundraising are:
Selected Answer: planned giving and charity.
Question 22 6 out of 6 points
According to Carney and Ross, which country has achieved some of the largest mass participation
fundraising events?
Selected Answer: Ethiopia
Question 23 6 out of 6 points
Most business plans begin with a(an) that gives a thorough but succinct overview of
the major points made in the following sections of the plan.
Selected Answer: executive
Question 24 5 out of 6 points

Explain the benefits to the nonprofit of a cause-marketing relationship.
Selected Answer: One sells more of company partners’ products in return of more financial benefit to the
Response Benefit is typically financial…
Question 25 5 out of 6 points
Diagram a model for managing a global nongovernmental organization.
Selected Answer: Operational NGOs: focus on development projects
Advocacy NGOs: organized to promote particular causes
NGOs rely on a variety of sources for funding: membership dues, private donations, the
sale of goods, and services grants
Response Focused more on how to organize the board. Table 17.1, 437.

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