BUSI 409 MIDTERM EXAM

1. Financial penalties to punish individuals who engage in or permit improper transgressions are called
a. give or get policies.
b. intermediate sanctions.
c. excess benefit transactions.
d. means to an end.

2. According to Simon’s concept of life stages of an organization, what is the last stage?
a. Produce and sustain
b. Imagine and inspire
c. Ground and grow
d. Review and renew

3. Which assessment tool is meant to determine an organization’s success in accomplishing its mission, or program effectiveness?
a. Cost-benefit analysis
b. Financial ratio approach
c. Outcomes approach
d. Peer analysis

4. Strategic planning is not a substitute for
a. leadership.
b. consulting.
c. organizational meetings.
d. accountability.

5. This concept was developed as a way for businesses to obtain a balanced perspective on performance by combining financial data with other considerations.
A. Financial ratios
b. Balanced scorecard
c. Common indicators
d. Cost-benefit analysis

6. Organizations that are classified as tax-exempt are not required to pay
a. sales tax.
b. property tax.
c. capital gains tax.
d. income tax.
e. all of the above

7. Today’s boards are being exhorted not only to raise money and promote the organization but also to
a. encourage more cooperation between the CEO and the board.
b. be more aggressive in monitoring performance.
c. motivate its members.
d. increase communication levels between the board and the rest of the organization.
8. The term that is defined as the ability to learn as an organization and identify ways to improve, to change in response to client needs, to create new and innovative programs, and to create an environment that is motivating to staff and volunteers is
a. program delivery capacity.
b. adaptive capacity.
c. program expansion capacity.
d. capacity building.

9. According to blended value theorists, value should be thought about as having three components: economic value, social value, and
a. spiritual value.
b. educational value.
c. artistic value.
d. environmental value.

10. According to Collins, this type of leadership exists when the leader has the power to simply make decisions.
a. Legislative leadership
b. Figurehead leadership
c. Executive leadership
d. Charismatic leadership

11. A study conducted by the Corporation for National and Community Service found that of individuals who vol¬unteered in 2005 did not continue their activity in 2006.
a. one fourth
b. one third
c. one half
d. two thirds

12. The importance of this aspect of external activity is growing as government support for many programs has been reduced.
a. Professional associations
b. Executive transitions
c. Employee orientation
d. Fund-raising

13. A is a perspective or a way of seeing and understanding things.
a. grid
b. task behavior
c. transition
d. frame

14. Effective nonprofit leaders are those who are not excessively focused on
a. empowering others.
b. internal management.
c. external relationships.
d. the organization’s mission.

15. This method relates to the actions necessary to implement the strategic plan.
a. Strategic management
b. Operational planning
c. Analytical planning
d. Long-range planning

16. Nonprofits may compete directly with other organizations, nonprofit or for-profit, but also face from all alternative uses for individuals’ time and money.
a. competition-oriented pricing
b. demographic variables
c. generic competition
d. promotions

Without building , organizations cannot grow successful programs to a larger scale, thus limiting their impact.
a. revenue
b. capacity
c. facilities
d. morale

18. 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
a. performance measurement.
b. goal displacement.
c. information asymmetry.
d. population ecology.

19. Elected boards are most common in
a. public organizations.
b. member-serving and advocacy organizations.
c. charitable nonprofits.
d. companies headed by a CEO.

20. enables the system to adapt to changing circumstances.
a. Internal dynamics
b. External forces
c. Bureaucracies
d. Feedback

21. Collaborations and mergers between nonprofits whose missions, operational style, constituencies, or geographic proximities are similar are than those with a lesser level of relatedness.
a. less likely to succeed
b. more likely to succeed
c. shorter lived
d. longer lived

22. In a self-perpetuating board, new members are selected by
a. the membership of the organization.
b. the CEO.
c. the existing members of the board.
d. a selection committee.

23. Excess benefit transaction is
a. when a person’s compensation is deemed in excess of the value of his or her services.
b. the responsibility of a board to make sure an organization is complying with law.
c. how an organization keeps costs of benefits reasonable.
d. a model of board-CEO relationship.

24. Discuss the effects of watchdog organizations that proactively examine nonprofit organizations. Are these effects mostly positive or negative? Why?

25. List and describe two (2) of the most common issues in a merger and discuss how a nonprofit might minimize those issues in a merger situation.