New! You can now get your essay written cheaply at just $8 per page

We have online essay helpers for hire. Get an original paper via email

BUSI 409 Midterm exam Principles and Practice (2017)

Question 1 6 out of 6 points
According to Higgins, nonprofit organizations have:
Selected Answer: board and staff members with different goals and agendas.
Question 2 6 out of 6 points
Managers of nonprofit organizations must measure their success by:
Selected Answer: their ability to achieve a mission and to meet their financial bottom line.
Question 3 6 out of 6 points
This method relates to the actions necessary to implement the strategic plan.
Selected Answer: Operational planning
Question 4 6 out of 6 points
The beginning of management as a field of study dates approximately to the:
Selected Answer: late 19th century.
Question 5 6 out of 6 points
La Piana Consulting defines the intensity of the commitment that two or more nonprofits must make to each
other as:
Selected Answer: integration.
Question 6 6 out of 6 points
Most nonprofits obtain revenue from:
Selected Answer: multiple sources.
Question 7 6 out of 6 points
Strive Partnership measures the partnership’s performance through the use of a(an):
Selected Answer: annual report card.
Question 8 6 out of 6 points
According to Edgar Schein, logos, ceremonies, and symbols belong to this defined category of culture.
Selected Answer: Artifacts and creations
Question 9 6 out of 6 points
According to Collins, this type of leadership exists when the leader has the power to simply make decisions.
Selected Answer: Executive leadership
Question 10 6 out of 6 points
The perception that nonprofits are less well managed than businesses is:
Selected Answer: not based on any research and is a myth.
Question 11 0 out of 6 points MISSED
GMT -05:00

Question 12 6 out of 6 points
Very high __ may suggest that an organization is inefficient, or even participating in unethical or
fraudulent behavior.
Selected Answer: fund-raising costs
Question 13 6 out of 6 points
As Letts and colleagues observe, managers often face two challenges—getting the job done and:
Selected Answer: keeping the staff satisfied.
Question 14 6 out of 6 points
Whose article “Bowling Alone: America’s Declining Social Capital” discussed a decline in civic engagement among
Selected Answer: Robert Putnam
Question 15 6 out of 6 points
The most credible medium of communication is:
Selected Answer: word-of-mouth.
Question 16 6 out of 6 points
Which decade marked a turning point in public policy, with government outsourcing more of the delivery and
management of social and human services to nonprofits, which resulted in the increased need for professional
management in nonprofit organizations and an increased number of students interested in working for nonprofit
Selected Answer: The 1980s.
Question 17 6 out of 6 points
Demands for accountability and the need for systems and procedures to comply with greater scrutiny and
regulation also have contributed to the need for:
Selected Answer: trained managers.
Question 18 6 out of 6 points
Nonprofit managers should be committed to performance measurement but:
Selected Answer: should not become overly focused on it to the detriment of their mission.
Question 19 6 out of 6 points
One way to reduce dependency and thus maintain more autonomy is to:
Selected Answer: diversify the sources of revenue.
Question 20 0 out of 6 points MISSED

According to the Independent Sector, one hour of volunteer time contributed to a nonprofit organization in 2013
was worth:
Selected Answer: $23.00.
Question 21 6 out of 6 points
Giving up something in return for something is referred to as a(an):
Selected Answer: exchange.
Question 22 6 out of 6 points
A proposed merger between Operation Smile and Smile Train was cancelled due to:
Selected Answer: differing strategies.
Question 23 6 out of 6 points
Roberta is participating in an interview about her nonprofit organization. The interview is being conducted by a
local radio station. Roberta is communicating with the:
Selected Answer: external public.
Question 24 5 out of 6 points
Draw a diagram of Patricia Bradshow’s five board configurations.
less formalization, less bureaucratic and more action oriented, fewer committees, smaller size,
less clarity of roles and responsibilities.
those are some of the considerations – described better on p93 of text. Not sure what a
diagram would look like:-)
Question 25 6 out of 6 points
Explain the three basic elements that effective planning begins with?
Selected Answer: Mission, vision, and values likely lead in breakdown in planning at some stage.

The requirement that nonprofits meet the expectations for measurable results has increased the need for _____.


Demands for accountability and the need for systems and procedures to comply with greater scrutiny and regulation also have contributed to the need for _____.

trained managers

Most nonprofits obtain revenue from _____.

multiple sources

Managers of nonprofit organizations must measure their success by _____.

their ability to achieve a mission and to meet their financial bottom line

Which decade marked a turning point in public policy, with government outsourcing more of the delivery and management of social and human services to nonprofits, which resulted in the increased need for professional management in nonprofit organizations and an increased number of students interested in working for nonprofit organizations?

the 1980s.

Those who view nonprofit organizations primarily as social institutions portray nonprofit managers as_____ .

stewards of their organization or servants of society

The complexity of the nonprofit manager’s job and the multiple pressures inherent in the job frequently result in _____ .

frustration and burnout

One overarching force that has driven the nonprofit management revolution of recent decades has been _____ .

the introduction of competition resulting from changes in funding patterns, growth of the sector, and increasing demands for accountability.

Throughout most of the history of management as a recognized discipline, most theorists have _____ .

argued that common management principles would apply equally to all organizations

Simultaneous with with the increase in nonprofit management literature in the 1990s and 2000s, what also grew rapidly?

educational programs related to nonprofit management

The perception that nonprofits are less well-managed than businesses is _____

not based on any research and is a myth

There has been a shift in thinking about nonprofits that emphasizes _____

building the strength of organizations themselves

The old “business as usual” approach for nonprofits has changed as a result of _____

all of these.

According to Herman, one of the differences of managing a nonprofit versus a for-profit corporation is_____.

nonprofit decisions must be consistent with the mission and ethical values of the organization

According to Higgins, nonprofit organizations have _____.

board and staff members with different goals and agendas

Research literature sources on nonprofit management include _____.

all of these

Almost of the revenue of charitable nonprofits comes from government grants and payments for services under programs such as Medicare and Medicaid

one third

A certain mistrust of ________ has been a pervasive and continuing aspect of American culture and has provided philosophical support for private, voluntary initiatives throughout the nation’s history,


Who authored the 1889 essay, titled “The Gospel of Wealth,” remains a classic statement of the philosophy underpinning the American tradition of philanthropy?

Andrew Carnegie

_______ is defined as giving intended to meet current individual human needs or to alleviate current human suffering.


______ is the phrase used to describe nonprofits that have a social objective but blend traditional nonprofit methods and commercial principles in their generation of revenue.

social enterprise

There is an increasing number of organizations that operate under both nonprofit and for-profit legal forms. These organizations are often referred to as _______ .

hybrid organizations

According to the text, the number of nonprofits operating in the United States today is around _______ .

1.9 million

In 2009, the nonprofit sector employed what percentage of the total U.S. workforce?

10 percent

What is intended to encourage charitable giving and sustain the services provided by charitable organizations?

tax deduction of gifts by donors

Who wrote the article “Bowling Alone: America’s Declining Social Capital” and discussed a decline in civic engagement among Americans?

Robert Putnam

A nonprofit that qualifies under Section 501 (c) (3) cannot support candidates for public office and must limit its expenditures on _____.


This U.S. principle prevents government funds from going directly to religious congregations or to organizations that would use them for religious activities.

separation of church and state

Which sub-sector of charitable nonprofits is the least professionalized?

religious organizations

Organizations that are exempt under Section 501 (c) (4), whose purpose is to work for social change are referred to by the Internal Revenue Service (IRS) as _____

social welfare organizations

The National Taxonomy of Exempt Entities (NTEE) divides nonprofit organizations into categories based on the organizations’ _____

purposes, activities, and programs

If measured by the total number of organizations, the largest subsector of charitable nonprofits is the _____ .

human service sector

If measured by total revenue, the number of employees, and its share of total wages and salaries, which subsector of charitable nonprofits is the largest nonprofit sector?

health services sector

These are organizations that exist for the sole purpose of directing money to other nonprofits

funding intermediaries

Organizations that are classified as tax-exempt are not required to pay _____

all of these

Private foundations most often are funded by _____ .

a single donor or a small number of donors

Unlike public charities, private foundations are not permitted to engage in _____ .


Salamon’s Nonprofit Anatomy classifies nonprofit organizations by _____ .

who receives the principal benefit of their activities.

Exempt activities are those that _____ .

directly address a nonprofit organization’s social missions

Museums, orchestras, and colleges and universities are classified as 501 (c) (3) by the IRS.


The person credited with helping to establish the distinction between the concepts of charity and philanthropy was Warren Buffet.


Sociologists describe nonprofits as _______.

mediating structures

The type of market failure in which a breakdown in the ideal or typical relationship between a buyer and seller occurs is called _______.

contract failure

According to Lohmann, after private goods and public goods, what is the third category of goods?

common goods

Nonprofits are ______.


The is a guide to every action taken by the organization and is the principal standard against which its performance should be measured.

mission statement

Nonprofits are driven by _______ .

achievement of the missions for which they exist

enables the system to adapt to changing circumstances.


This type of system is entirely self-sufficient and impervious to influences from its environment.

closed system

This theory explains the behavior of organizations in terms of their dependence on external constituencies.

resource dependence theory

One significant risk of resource dependency is actions taken by the nonprofit to alter its goals and activities to satisfy the contributor of funds. This is also called _______.

goal displacement

One way to reduce dependency and thus maintain more autonomy is to _______.

diversify the sources of revenue

The concept that maintains that organizations in the same field become more like each other as a result of facing similar influences from their environments is _______.


_______ refers to the tendency of organizations to mimic each other, specifically in models to be adopted.

Mimetic isomorphism

Normative isomorphism arises when organizations are influenced by the same standards of _______

professional practice

When individuals do not have complete information or lack the ability to understand or judge the quality of the good they seek to purchase, there is _______

information asymmetry

An approach taken by some sociologists to explain the birth and death of organizations, which analyzes organizations in terms of population density, is _______ .

population ecology

Great organizations that produce excellent results have _______ .

strong cultures

According to Edgar Schein, logos, ceremonies, and symbols belong to this defined category of culture.

artifacts and creations

Nonprofits are not allowed to undertake experimentation with regard to research and development of new programs.


Excess revenues (profits) gained by a nonprofit must be reinvested in the organization.


Elected boards are MOST common in ______

member-serving and advocacy organizations

In a self-perpetuating board, new members are selected by ______.

the existing members of the board

An ex officio seat on a board is held by ______.

an unappointed individual who holds the seat by virtue of their position

Financial penalties that punish individuals who permit improper transgressions are called ______.

intermediate sanctions

Establishing the nonprofit’s mission is the responsibility of the organization’s ______.

governing Board

When a board is operating in the fiduciary mode, it is concerned with the ______.

stewardship of the organization’s assets

Which organizational model places the board at the top of the hierarchy and the chief executive officer as an agent?


According to BoardSource, exceptional Boards ensure congruence between its ______.

decisions and core values

According to Dr. Worth, today’s Boards are expected to raise money and ______.

be more aggressive in monitoring the organization’s performance

Which type of board is commonly found in public organization?


What board duty is defined as members putting the interests of the organization above their personal interests?


What legal concept states officers cannot unreasonably benefit from the organization’s funds ?

private inurement

An excess benefit transaction occurs when ______.

employee or executive compensation exceeds the value of services provided

The Internal Revenue Service in 2009 revised which form to be a financial and governance report.

Form 990, Return of Organization Exempt From Income Tax

Which board responsibility requires the MOST effort?

raising philanthropic funds

In Thornton’s 2012 survey of nonprofit boards, what activity was identified as the most important responsibility of boards?

strategic planning

In Carver’s policy governance model, Carver argues boards should lead focusing their attention on establishing ______.


Chait, Ryan, and Taylor suggested nonprofit boards focus their attention on ______.

critical issues facing the organization

Who did Herman and Heimovics find as being responsible for the organization’s success or failure?

the Chief Executive Office

What organization assembled a panel of experts to identify best practices for effective governance in organizations ?


The chair of a nonprofit board of directors asked the chief executive officer to provide a report regarding fund-raising expenses. The chair is practicing which best practice?

ethos of transparency

A nonprofit board asked an outside consulting organization to assess the nonprofit’s program performance. Which best practice is the board applying?


A nonprofit board hired a consultant to help the directors identify new ways to improve organizational performance. According to Chait, the board is operating in what type of mode?


A nonprofit organization’s finance committee is listening to the advice of a financial expert on how to manage the organization’s investments. The board is practicing which duty?


A board of directors is debating if a proposed new program falls within the organization’s mission. The board is applying which type of duty?


A nonprofit board is establishing ground rules regarding what type of fund-raising efforts would not be allowed. The board is setting a policy that Carver would refer to as a/an ______.

means to the end

______ means a person is perceived by himself and the board as the organization’s formal authority.

Psychological centrality

What is the responsibility of overseeing day-to-day operations called ?


According to Dr. Worth (textbook author), a lack of leadership by the chief executive officer will eventually lead to ______

drift, decline, and failure

Which theory explains leadership in terms of the innate characteristics of individuals?


What leadership style focuses on relationships?


The significant characteristic of transformational leadership is that it _____.

offers an approach to leading both followers and organizations

The idea that a leader must be friendly but not overly familiar with subordinates is called _____.

social distance

Many nonprofit chief executive officers spend the majority of their time on _____.


According to Herman and Heimovics, effective chief executive officers stay focused on _____.

key goals and outcomes

A _____ is a way of understanding something.


According to Dym and Hutson, “organizational alignment” is ______ .

two-way proces

To minimize risk, nonprofit boards must select a new chief executive officer based on the organization’s ______ .


According to Kotter’s top-down approach, efforts at transformational change often fail because leaders allow too much ______ .


According to Collins, the power to simply make decisions is referred to as ______ leadership .


A leader who behaves in ways that cause others to see themselves as leaders is practicing ______ leadership .


A common method researchers use to identify successful leaders is based on _______ .

perceptions of effectiveness

Which management activity is growing due to reduced government support for nonprofit organizations?


Leaders who use a political frame are ______.

sensitive to external forces that might affect the organization

According to Dym and Hutson’s “alignment map,” what three components must align for a perfect leadership fit?

leaders, organizations, and the community

Internal preparation for executive transition is a shared responsibility of the nonprofit Board and the ______.

Chief Executive Officer

According to Dr. Worth, what style of leadership is best suited for leading nonprofit organizations?


A nonprofit’s Chief Executive Officer is attending a working lunch with community leaders who share the nonprofit organization’s values. The CEO is practicing which type of leadership?


A nonprofit Board of Directors is interviewing individuals for a Chief Executive Officer position. The Directors want to ensure the person they hire has a personality that matches the organization’s mission. The Board members want to ensure ______.


A nonprofit chief executive officer (CEO) displays little commitment to the organization’s mission. According to Blake and Mouton, the CEO has what type of management style?


Organizational leaders who change their leadership styles based on the particular circumstances of a situation are practicing ______ leadership.

contingency theory

Crutchfield and Grant determined effective nonprofit Chief Executive Officers ______.

share leadership with others

The founder of Habitat for Humanity found it difficult to turn management of the nonprofit over to a new chief executive officer. The founder was demonstrating ______ syndrome.


According to Kotter, leaders planning to implement organizational change should first ______.

establish a sense of urgency

A board of directors wants to hold an organizational retreat so they can interact with the chief executive officer, paid staff, and volunteers of their organization. The board is practicing which leadership theory?

leader-member exchange

Which governmental entity grants nonprofits their articles of incorporation (charters)?

State governments

For nonprofit organizations, accountability means _______.

Taking responsibility for their actions

Many nonprofit managers have voluntarily adopted the provisions of _______ as a way to assure their donors they are operating with high integrity, transparency, and sound governance.


Whose Standards for Excellence in Nonprofit Management has become a popular model for similar nonprofit associations across the US?

The Maryland Association of Nonprofit Organizations

This organization was formed in 2001 to provide standards for the largest and best known nonprofits, especially those most widely mentioned in the media.

The Wise Giving Alliance

A method used by most nonprofit managers to determine the effectiveness of certain actions in achieving the organization’s goals and objectives is called ________.

program evaluation

A very high ________ may suggest an organization’s management is inefficient, or even participating in unethical or fraudulent behaviors.

fundraising costs

Leading thought in the field of performance measuring of nonprofits appear to be moving away from an emphasis on the organizations _______.

financial ratios

In its primary definition, ______ involves comparisons among organizations, either at the macro or at the micro level.


If an organization wanted to help highlight its strengths and weaknesses for further analysis, which technique would be most useful?

Statistical benchmarking

Which assessment tool is meant to determine an organization’s success in accomplishing its mission or program effectiveness?

Outcomes Approach

A theoretical concept explaining the links all the way through a service delivery process is called a(n) _________.

Logic model

This model was developed as a way for a business (or nonprofit) to achieve a more equalized perspective on performance by combining financial data with other important variables.

Balanced scorecard

This concept adds social return to financial return in order to generate a single dollar amount that could be used as an indicator of the organization’s performance and value.

Social return on investment

This model holds that all organizations create value that consists of economic, social, and environmental value components, and that investors simultaneously generate all three forms of value through providing capital to organizations.

Blended value

A variation of the Balanced Scorecard that was designed specifically for nonprofits and that asks “Does it work?” and “Is the organization well run?” is called a(n) _________.


One disadvantage of the Social Return on Investment model is that _________.

the analysis process requires a lot of resources (i.e., resource intensive)

Nonprofit managers must be committed to performance measurements, but _______.

should not become overly focused on it to the detriment of the organization’s mission.

In 2004, the Urban Institute and the Center for What Works undertook a project to identify a _______ that nonprofits could use to inform practice and that would be practical to implement.

a common set of outcomes and success indicators.

The _____ has a mechanism that can ‘certify’ a nonprofit based on how they conduct their business.

Better Business Bureau

Get Help With Your Homework

We only need your paper requirements to create a plagiarism-free paper on time

Write My Paper For Me