BUSI 409 Midterm Exam Answers


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


The idea that a leader must be friendly but cannot permit himself or herself to become too familiar with subordinates is


The various life-stage theories have many critics, but the theories reflect a(n) _____ consistent with the values of most nonprofit organizations.


In its proper definition, this term involves comparisons among organizations, either at the macro or at the micro level.


This identifies the characteristics, values, perceptions, expectations, and concerns of stakeholders, including clients or customers, donors, and relevant government officials.


Nonprofit management literature sources include


In Dym and Hutson’s alignment map, how many components must be aligned for a perfect fit?


Which government entity grants nonprofits their charters?


Nonprofits may compete directly with other organizations, nonprofit or for-profit, but also face from all alternative uses for individuals’ time and money.


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


According to Dym and Hutson, alignment is



The nation’s first school of management was the


As Maslow and other theorists explain, people come to the workplace



A generic term that encompasses any relationship in which two or more independent organizations work together toward common objectives is


Salamon’s Anatomy classifies nonprofit organizations by



What are specific, quantified targets that represent steps toward accomplishing goals?


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



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



According to Simon’s concept of life stages of an organization, what is the last stage?



Collaborations and mergers between nonprofits whose missions, operational style, constituencies, or geographic proximities are similar are than those who a lesser level of relatedness.



This proposition states that all organizations create value that consists of economic, social, and environmental value components, and that investors simultaneously generate all three forms of value the our providing capital to organizations.



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



An operational plan describes the specific actions that must be taken to accomplish each objective identified in the strategic plan.


With very few exceptions, individuals serving on a nonprofit’s board do so in a paid capacity.



It is incumbent upon the governing board to establish policies and priorities, approve the procedures to accomplish them, and monitor and assess the organization’s success in achieving its mission.


Through an organizational analysis, the organization’s leaders can identify these external trends/issues that may have an impact on the organization.


Monitoring the financial condition of the organization is a responsibility that neither can nor should be delegated.


Although the chief executive officer (CEO), the treasurer, and the finance committee have the chief responsibility for developing and tracking the budget, it is every board member’s responsibility to understand the budget, the budgeting and investment procedures, and the organization’s financial history in terms of reserves and restricted funds (if any).


Objectives and strategies form the heart of a marketing plan and make use of all the items in the marketing.


The process of strategic planning-the development, implementation, and assessment of a plan-is not a single, one-shot event, rather, it is an ongoing continuous process, which must adapt to environmental changes, both external and internal.


Nonprofit leaders who think and manage strategically can and should develop mechanisms to continuously (not just during the strategic planning process) monitor emerging trends, opportunities and threats to the organization.


Whereas goals – or purposes – identify general policy directions of an organization, mission statements specify how these general policy directions will be carried out.


A sales analysis is a method of evaluation that will help determine whether marketing objectives are being met, but it does not yield any information about how much better you might be doing. A market share analysis will give you a sense of the total possible universe and the portion that you ‘own’.


An area of particular concern for many executives is the distinction between the board’s role as policymaker and the chief executive’s role as administrator and implementer.


Values and beliefs that recognize constituent needs and expectations can be captured as principles that define the philosophical guidelines for the organization’s activities


A nonprofit organization is typically born out of a group’s desire to solve a problem, meet a need, help a profession to develop, or create new opportunities.


Goals should be separated from the mission statement so that they can be used as tools to assess the success of the organization in fulfilling its mission.


Of major importance is that strategic objectives should not only respond to the needs of constituents, but also be realistic with respect to the organization’s environment, both externally and internally, including the available human and financial resources required to accomplish them.


A strategic plan broadly maps the activities the organization should pursue to reach its desired goals; it is not a detailed chronology of action.


The operational plan, focuses on the what, whereas the strategic plan will focus on the how.


Selling is offering something in exchange for money: ‘I have something that I want you to buy.’ The emphasis is on the seller and the object being offered. An executive with a marketing orientation might say, ‘you have a need that I understand, and I am offering a product or service to meet that need.’


Breaking down a large potential market into special interest groups is called market segmentation, or targeting the market, and that is how marketing is done today


Working from the strategic plan, nonprofit organizations then develop coherent, focused, realistic operational plans, describing the specific actions that must be taken to accomplish each objective identified in the strategic plan.


Some nonprofits find it helpful to develop both positive and negative scenarios about the organization’s distant future (15 to 20 years into the future).4


Only standing committees — those that relate to the basic governance of the organization – should be included in a nonprofit bylaws.


An analysis of the internal environment means assessing the organization’s strengths and weaknesses in all aspects of the organization.


Most governing boards are elected — many by the constituents at large, some by the members of the governing board electing their own replacements.


The capacity-building activities undertaken vary according to the organization’s