Nonprofit Management: Principles and Practice Fourth Edition Test Bank

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Nonprofit Management4eMichael J. WorthInstructor Resource1Chapter 1–Nonprofit Management as a Profession and a Field of StudyTEST BANK1.The requirement that nonprofits meet the expectations for measurable results has increased theneed for:a.empowered customers.b.funding to stategovernments.*c.management.d.voucher-type payments.Answer Location:A Revolution in ManagementLearning Objective:1-4Cognitive Domain:ComprehensionQuestion Type: MC2.Demands for accountability and the need for systems and procedures to comply with greaterscrutiny and regulation also have contributed to the need for:a. dramatic growth of organizations.*b.trained managers.c. philanthropic contributions.d. long-term investments in nonprofits.Answer Location:A Revolution inManagementLearning Objective:1-3Cognitive Domain:ComprehensionQuestion Type: MC3. Most nonprofits obtain revenue from:*a. multiple sources.b. government contracts only.c. the sale of products and services.d. corporate sponsors only.Answer Location:A Distinct Profession:Learning Objective:1-1Cognitive Domain:KnowledgeQuestion Type: MC4. Managers of nonprofit organizations must measure their success by:a. the number of volunteers they can recruitin a fiscal year.b. successfully providing goods and services to customers, thereby increasing the organization’sresources.c. their ability to manage staff resources without the advantage of a top-down businessmanagement hierarchy.*d. their ability to achieve a mission and to meet their financial bottom line.Answer Location:A Distinct ProfessionLearning Objective:1-1

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Nonprofit Management4eMichael J. WorthInstructor Resource2Cognitive Domain:KnowledgeQuestion Type: MC5. The nation’s first school of management was the:a. Mandel Center for Nonprofit Organizations at CaseWestern Reserve University.*b. Wharton School at the University of Pennsylvania.c. Yale Program onNonprofitOrganizations.d. Center on Philanthropy at Indiana University.Answer Location:Nonprofit Management as a Field of StudyLearning Objective:1-2Cognitive Domain:KnowledgeQuestion Type: MC6. Which decade marked a turning point in public policy, with government outsourcing more ofthe delivery and management of social and human services to nonprofits, which resulted in theincreased need for professional management in nonprofit organizations and an increased numberof students interested in working for nonprofit organizations?a.The 1960s.b.The 1970s.*c.The 1980s.d.The 1990sAnswer Location:Nonprofit Management as a Field of StudyLearning Objective:1-4Cognitive Domain:KnowledgeQuestion Type: MC7.Those who view nonprofit organizations primarily as social institutions portray nonprofitmanagers as:a. leaders with strong business backgrounds.*b. stewards of their organization or servants of society.c. social entrepreneurs.d. the glue that holds the rest of the organization together.Answer Location:Toward a Balanced ApproachLearning Objective:1-4Cognitive Domain:ComprehensionQuestion Type: MC8. Most smallbusinesses:a. are better managed than most nonprofits.b. are more successful than most nonprofits.c. eventually evolve into corporations.*d. fail within the first five years of their existence.Answer Location:Proceeding with Realism and PrideLearning Objective:1-1Cognitive Domain:Knowledge

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Nonprofit Management4eMichael J. WorthInstructor Resource3Question Type: MC9.The complexity of the nonprofit manager’s job and the multiple pressures inherent in the jobfrequently result in:a. enrolling in professional management refresher courses.*b. frustration and burnout.c. six-figure salaries.d. honorary degrees.Answer Location:Proceeding with Realism and PrideLearning Objective:1-4Cognitive Domain:ComprehensionQuestion Type: MC10.One overarching force that has driven the nonprofitmanagement revolution of recent decadeshas been:*a. the introduction of competition resulting from changes in funding patterns, growth of thesector, and increasing demands for accountability.b. the need to hire formally trained managers.c. the invasion of for-profit business into philanthropy.d. the development of the MPA degree programs in universities, which differentiated the study ofpublic management from the discipline of political science.Answer Location:A Revolution in ManagementLearning Objective:1-4Cognitive Domain:KnowledgeQuestion Type: MC11. Throughout most of the history of management as a recognized discipline, most theoristshave:a. maintained that businesses required more educated managers.b. stated that government organizations have the most need of managers with distinctive skills.*c. argued that common management principles would apply equally to all organizations.d. claimed that only business managers have any need of professional development.Answer Location:A Distinct ProfessionLearning Objective:1-1Cognitive Domain:KnowledgeQuestion Type: MC12. The beginning of management as a field of study dates approximately to the:*a. late 19th century.b. early 18th century.c. 1960s.d. 1980s.Answer Location:Nonprofit Management as a Field of StudyLearning Objective:1-3Cognitive Domain:Knowledge

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Nonprofit Management4eMichael J. WorthInstructor Resource4Question Type: MC13. This organization was founded in 1970 and began to accredit public administration degreeprograms.a.The Commission on PrivatePhilanthropy and Public Needsb.The Yale Program onNonprofitOrganizations*c.The National Association of Schools of Public Affairs and Administrationd.The Nonprofit Academic Centers CouncilAnswer Location:Nonprofit Management as a Field ofStudyLearning Objective:1-3Cognitive Domain:KnowledgeQuestion Type: MC14. Concomitant with the increase in nonprofit management literature in the 1990s and 2000s,what also grew rapidly?a.Government-funded programs to educate nonprofit managers*b.Educational programs related to nonprofit managementc.Academic journals that specialized in nonprofit managementd.Competition for philanthropic missions by for-profitsAnswer Location:Nonprofit Management as a Field of StudyLearning Objective:1-3Cognitive Domain:KnowledgeQuestion Type: MC15. The perception that nonprofits are less wellmanaged than businesses is:a.cultivated mostly by for-profit corporations.*b. notbased on any research and is a myth.c. provides the basis of many nonprofit management courses.d. cultivated mostly by government agencies.Answer Location:Chapter SummaryLearning Objective:1-1Cognitive Domain:ComprehensionQuestion Type: MC16. There has been a shift in thinking about nonprofits that emphasizes:a.increasing the salaries of managers to levels comparable to their business peers.b. valuing the financial bottom line over achieving the nonprofit’s mission.c. hiring managers with MBAs.*d. building the strength of organizations themselves.Answer Location:A Revolution in ManagementLearning Objective:1-4Cognitive Domain:ComprehensionQuestion Type: MC

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Nonprofit Management4eMichael J. WorthInstructor Resource517.The double bottom line concept means CEOs must:a.meet organizational goals and objects.*b.achieve the missionwithinfinancialmeans.c.be accountable to their donors and the Internal Revenue Service.d.increase the value of the business and the wealth of its owners.Answer Location:A Distinct ProfessionLearning Objective:1-1Cognitive Domain:KnowledgeQuestion Type:MC18. According to Herman, one of the differences of managing a nonprofit versus a for-profitcorporation is:*a. nonprofit decisions must be consistent with the mission and ethical values of theorganization.b. nonprofits are not allowed to make any profits.c. nonprofit stakeholders are the same as stockholders.d.none of the above.Answer Location:A Distinct ProfessionLearning Objective:1-5Cognitive Domain:ComprehensionQuestion Type: MC19. According to Higgins, nonprofit organizations have:a. manyvolunteers.b. constituents that don’t really know what they do.*c. board and staff members with different goals and agendas.d. constituents with only one perspective.Answer Location:A Distinct ProfessionLearning Objective:1-5Cognitive Domain:KnowledgeQuestion Type: MC20.Nonprofit management literature is drawn from which of the three areas?a.Social science research, customer complaints, and reports prepared by practitionersb.Social science research, organizational theory, and community feedbackc.Internal Revenue Service financial reports, organizational, theory, and social science research*d.Social science research, organizational theory, and practitioner reportsAnswer Location:Nonprofit Management as a Field of StudyLearning Objective: 1-3Cognitive Domain:KnowledgeQuestion Type:MC21.According to Frumkin, the “expressive” purpose of nonprofits is to:*a.serve as social institutions.

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Nonprofit Management4eMichael J. WorthInstructor Resource6b.serve as government institutions.c.serve as business sector institutions.d.associal enterprises.Answer Location:Toward a Balanced ApproachLearning Objective: 1-5Cognitive Domain:KnowledgeQuestion Type:MC22.Individuals who believe that nonprofit organizations should apply business methods ofmanagement perceive nonprofit organizations as:a.social institutions.b.government institutions.*c.social enterprises.d.education institutions.Answer Location:Toward a Balanced ApproachLearning Objective: 1-4Cognitive Domain:KnowledgeQuestion Type:MC23.The University of Georgia, Institute for Nonprofit Organizations offers graduate schoolcoursework through the departments of social work, political science, and management.This isan example of studying the field of nonprofit management applying a(an):a. entrepreneurialapproach.*b.interdisciplinaryapproach.c.natural science approach.d.inspired approach.Answer Location:Nonprofit Management as a Field of StudyLearning Objective:1-3Cognitive Domain:ComprehensionQuestion Type:MC24.Bill Shore recommends that philanthropic foundations:a.change their focus to funding nonprofit programs.b.change their focus to funding operational costs of nonprofit programs.*c. change their focus to funding nonprofit capacity.d.change their focus to fundingresearch.Answer Location:A Revolution in ManagementLearning Objective:1-5Cognitive Domain:KnowledgeQuestion Type:MC25.Who wrotethat nonprofit organizationsrequire a multi-faceted, flexible approach tomanagement?a.Christine Lettsb.Bill Shore

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Nonprofit Management4eMichael J. WorthInstructor Resource7c.Robert Herman*d.Helmut AnheierAnswer Location:A Distinct ProfessionLearning Objective:1-4Cognitive Domain:KnowledgeQuestion Type:MC26.Who was the first individual to suggest that management be a distinct field of study with itsown literature?a.Bill Shoreb.Christine Letts*c.Henry Towned.Helmut AnheierAnswer Location:Nonprofit Management as a Field of StudyLearning Objective: 1-5Cognitive Domain:KnowledgeQuestion Type:MC27.Which university was the first to offer a bachelor’s degree inphilanthropy?a.Harvard Universityb.University of Wisconsin*c.Indiana Universityd.University of MarylandAnswer Location:Nonprofit Management as a Field of StudyLearning Objective: 1-3Cognitive Domain:KnowledgeQuestion Type:MC28.Bill identified an opportunityto meet the needs of young mothersin a new way.He appliedan innovativefundraising technique to secure the funds to open a counseling center where hisnew program was offered.According to yourauthor’sdefinitions, Bill isdemonstratingthecharacteristics of:*a.social innovationb.social intrapreneurshipc.social scienced.social counselingAnswer Location:Nonprofit Management as a Field of StudyLearning Objective: 1-4Cognitive Domain:ComprehensionQuestion Type:MC29.Capital markets would provide nonprofit organizationsfunding based on:a.the number ofnew clientsrecruited.b.capacity.c.sustainability.

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Nonprofit Management4eMichael J. WorthInstructor Resource8*d.rationality.Answer Location:Toward a Balanced ApproachLearning Objective: 1-4Cognitive Domain:KnowledgeQuestion Type:MC30.Which authors suggest that it is time for nonprofit organizations toshifttheir focus from“telling time” to “building clocks?”a.Letts, Ryan, and Grossb.Shore and Letts*c.Collins and Porrasd.Herman andAnheierAnswer Location:A Revolution in ManagementLearning Objective:1-5Cognitive Domain:KnowledgeQuestion Type:MC31.The revolution in nonprofit management has been caused, in part, by an economic downturnthat led to a reduction in funding and an increase in the need for services.*a. Trueb. FalseAnswer Location:A Revolution in ManagementLearning Objective:1-1Cognitive Domain:KnowledgeQuestion Type: TF32.One of the ways that nonprofit organizations differ from for-profit corporations is theirstakeholders.*a. Trueb. FalseAnswer Location:A Distinct ProfessionLearning Objective:1-1Cognitive Domain:KnowledgeQuestion Type: TF33.One of the sources for nonprofit management literature comes fromacademics atcollegesanduniversities.*a. Trueb. FalseAnswer Location:Nonprofit Management as a Field of StudyLearning Objective:1-3Cognitive Domain:KnowledgeQuestion Type: TF

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Nonprofit Management4eMichael J. WorthInstructor Resource934.The perception that nonprofit organizations are less well-managed than businesses is_________.a. True*b. FalseAnswer Location:Chapter SummaryLearning Objective:1-1Cognitive Domain:ComprehensionQuestion Type: TF35.The beginning of management as a field of study dates approximately to the late 19thcentury.*a. Trueb. FalseAnswer Location:Nonprofit Management as a Field of StudyLearning Objective:1-3Cognitive Domain:KnowledgeQuestion Type: TF36.Most small businesses fail within the first two years of business.a. True*b. FalseAnswer Location:Proceeding withRealism and PrideLearning Objective:1-1Cognitive Domain:KnowledgeQuestion Type: TF37. Most nonprofits receive revenue from government funding only.a. True*b. FalseAnswer Location:A Distinct ProfessionLearning Objective:1-1Cognitive Domain:ComprehensionQuestion Type: TF38.Mendel argues that nonprofitstudiesmustgo beyond traditional accountability and includepolitical studies.*a. Trueb. FalseAnswer Location:Nonprofit Management as a Field of StudyLearning Objective:1-3Cognitive Domain:KnowledgeQuestion Type: TF39.A recent shift in thinking about nonprofits has focused more on the capacity andsustainability of the organization as opposed to its programs and services.*a. True

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Nonprofit Management4eMichael J. WorthInstructor Resource10b. FalseAnswer Location:A Revolution in ManagementLearning Objective:1-4Cognitive Domain:KnowledgeQuestion Type: TF40.Compareandcontrastthenonprofit managementfrombusinessmanagement.Ans: VariesAnswer Location:A Distinct ProfessionLearning Objective:1-1Cognitive Domain:AnalysisQuestion Type: ESS41.Identifythe differences between a for-profit business providing a good or service to itscustomers and a nonprofit providing a good or service to its customers. What does the act ofsatisfying customers in each instance do to its resources?Ans: VariesAnswer Location:A Distinct ProfessionLearning Objective:1-1Cognitive Domain:ApplicationQuestion Type: ESS42.Determinewhich type of organization—a business or a nonprofit—wheresuccessismoredifficult to come by? Why?Ans: VariesAnswer Location:A Distinct ProfessionLearning Objective:1-1Cognitive Domain:ApplicationQuestion Type: ESS43.Analyzethe debate about whether nonprofit management programs are best taught inbusiness schools, schools of public affairs and administration, or in colleges of arts and sciences.Which do you think is the most appropriate setting? Why?Ans: VariesAnswer Location:Nonprofit Management as a Field of StudyLearning Objective:1-2Cognitive Domain:AnalysisQuestion Type: ESS44.Interpretthe two primary perspectives reflected in the contemporary nonprofitmanagementliterature.Ans: VariesAnswer Location:Nonprofit Management as a Field of StudyLearning Objective:1-3Cognitive Domain:Analysis

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Nonprofit Management4eMichael J. WorthInstructor Resource11Question Type: ESS45.Identifythe various stakeholders a nonprofit must be accountable to.Explainwhy.Ans: VariesAnswer Location:A Revolution in ManagementLearning Objective:1-1Cognitive Domain:ApplicationQuestion Type: ESS46.Analyzehow the revolution in management influenced the way nonprofit organizations aremanaged.Ans: VariesAnswer Location:A Revolution in ManagementLearning Objective:1-1Cognitive Domain:AnalysisQuestion Type: ESS47.Identifyperspectives and agendas that might be found in a nonprofit organization andexplorehow theymayimpactthe job of the CEO.Ans: VariesAnswer Location:A Distinct ProfessionLearning Objective:1-4Cognitive Domain:AnalysisQuestion Type: ESS48.Compare and contrast the perspectives of scholars andpractitionersregarding the plightofnonprofit sector management.Ans:VariesAnswer Location:Nonprofit Management as a Field of StudyLearning Objective: 1-4Cognitive Domain:AnalysisQuestion Type:ESS

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Nonprofit Management4eMichael J. WorthInstructor Resource1Chapter 2–Overview of the Nonprofit SectorTEST BANK1.Almostof the revenue of charitable nonprofits comes from government grantsand payments for services under programs such as Medicare and Medicaid.a.one-fourth*b.one-thirdc.one-halfd.three-fourthsAnswer Location:IntroductionLearning Objective:2-1Cognitive Domain:KnowledgeQuestion Type: MC2. A certain mistrust of this has been a pervasive and continuing aspect of American culture andhas provided philosophical support for private, voluntary initiatives throughout the nation’shistory.*a.Governmentb.Volunteersc.Lawyersd.UniversitiesAnswer Location:America’s Nonprofit Sector:A Historical OverviewLearning Objective:2-9Cognitive Domain:ComprehensionQuestion Type: MC3. Whose 1889 essay, titled “The Gospel of Wealth,” remains aclassic statement of thephilosophy underpinning the American tradition of philanthropy?a. John D. Rockefellerb. Warren Buffet*c. Andrew Carnegied. Theodore RooseveltAnswer Location:2-9Learning Objective:America’s Nonprofit Sector:AHistorical OverviewCognitive Domain:KnowledgeQuestion Type: MC4. What is defined as giving intended to meet current individual human needs or to alleviatecurrent human suffering?a.Philanthropyb.Voluntarismc.Nonprofitism*d.Charity

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Nonprofit Management4eMichael J. WorthInstructor Resource2Answer Location:America’s Nonprofit Sector:A Historical OverviewLearning Objective:2-2Cognitive Domain:ComprehensionQuestion Type: MC5. Which term is defined as nonprofits that have a social objective but blend traditional nonprofitmethods and commercial principles in their generation of revenue?a.Charitable sector*b.Social enterprisec.Tax-exempt sectord.Civil societyAnswer Location:Alternatives to “Nonprofit”Learning Objective:ComprehensionCognitive Domain:2-2Question Type: MC6. Thereare an increasing number of organizations that operate under both nonprofit and for-profit legal forms that are often referred to as:*a. hybrid organizations.b. social sector organizations.c. voluntary sector organizations.d. civilservice organizations.Answer Location:Alternatives to “Nonprofit”Learning Objective:2-2Cognitive Domain:KnowledgeQuestion Type: MC7. The number of nonprofits operating in the United States today is approximately:a. 3.5 million.*b. 1.9million.c. 5.2 million.d. 2.6 million.Answer Location:Chapter SummaryLearning Objective:2-9Cognitive Domain:KnowledgeQuestion Type: MC8. In 2009, the nonprofit sector employed what percentage of the total workforce?a. 5 percentb. 20 percentc. 30 percent*d. 10 percentAnswer Location:Size of the U.S. Nonprofit SectorLearning Objective:2-9Cognitive Domain:Knowledge

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Nonprofit Management4eMichael J. WorthInstructor Resource3Question Type: MC9. What were the total combined assets of all nonprofits in 2008?a. $500 millionb. $20 billion*c. $4.3trilliond. $800 billionAnswer Location:Size of the U.S. Nonprofit SectorLearning Objective:2-9Cognitive Domain:KnowledgeQuestion Type: MC10. What is intended to encourage charitable giving and sustain the services provided bycharitable organizations?a.Being classified as a 501(c)(3) organizationb.Receiving free health care vouchers in exchange for giftsc.The lifting of limitations on lobbying*d.Tax deductions for giftsAnswer Location:Differentiating the Nonprofit SectorLearning Objective:2-9Cognitive Domain:ComprehensionQuestion Type: MC11. Whose article “Bowling Alone: America’s Declining Social Capital” discussed a decline incivic engagement among Americans?a. Michael Mooreb. Bill Gates*c. Robert Putnamd. LesterSalamonAnswer Location:Size of the U.S. Nonprofit SectorLearning Objective:2-9Cognitive Domain:KnowledgeQuestion Type: MC12. A nonprofit that qualifies under Section 501(c)(3) cannot support candidates for publicoffice and must limit itsexpenditures on:a. staff salaries.*b. lobbying.c. health care.d. legal counsel.Answer Location:Differentiating the Nonprofit SectorLearning Objective:2-4Cognitive Domain:ComprehensionQuestion Type: MC

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Nonprofit Management4eMichael J. WorthInstructor Resource413. This principle prevents government funds from going directly to religious congregations or toorganizations that would use them for religious activities.*a.Separation of church and stateb.Charitable choice provisionsc.Tax-exempt provisionsd.The nondistribution testAnswer Location:Differentiating the Nonprofit SectorLearning Objective:2-1Cognitive Domain:ComprehensionQuestion Type: MC14. Which subsector of charitable nonprofits is the least professionalized?a.Environmental organizationsb.Advocacy organizations*c.Religious organizationsd.Arts and culture organizationsAnswer Location:Differentiating the Nonprofit SectorLearning Objective:2-5Cognitive Domain:ComprehensionQuestion Type: MC15. Organizations that are exempt under Section 501 (c)(4),whose purpose is to work for socialchangeare referred to by the Internal Revenue Service (IRS) as:a. religious organizations.b. environmental organizations.c. arts and culture organizations.*d.advocacyorganizations.Answer Location:Differentiating the Nonprofit SectorLearning Objective:2-4Cognitive Domain:KnowledgeQuestion Type: MC16. The National Taxonomy of Exempt Entities (NTEE) divides nonprofit organizations intocategories based on the organization’s:*a. purposes, activities, and programs.b. budget and staff.c. mission and vision statements.d. type of clients served.Answer Location:Differentiating the Nonprofit SectorLearning Objective:2-3Cognitive Domain:KnowledgeQuestion Type: MC17. If measured by the total number of organizations, the largest subsector of charitablenonprofits isthe:

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