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Nonprofit Management: Principles and Practice Fourth Edition Test Bank

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    Nonprofit Management 4e Michael J. Worth Instructor Resource 1 Chapter 1 – Nonprofit Management as a Profession and a Field of Study TEST BANK 1. The requirement that nonprofits meet the expectations for measurable results has increased the need for : a. empowered customers. b. funding to state governments. *c. management. d. voucher - type payments. Answer Location: A Revolution in Management Learning Objective: 1 - 4 Cognitive Domain: Comprehen sion Question Type: MC 2. Demands for accountability and the need for systems and procedures to comply with greater scrutiny 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 in Management Learning Objective: 1 - 3 Cognitive Domain: Comprehension Question Type: MC 3. 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 - 1 Cognitive Domain: Knowledge Question Type: MC 4. Managers of nonprofit organizations must measure their success by : a. the number of vo lunteers they can recruit in a fiscal year. b. successfully providing goods and services to customers, thereby increasing the organization’s resources. c. their ability to manage staff resources without the advantage of a top - down business management hierarchy. *d. their ability to achieve a mission and to meet their financial bottom line. Answer Location: A Distinct Profession Learning Objective: 1 - 1

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    Nonprofit Management 4e Michael J. Worth Instructor Resource 2 Cognitive Domain: Knowledge Question Type: MC 5. The nation’s first school of management was the : a. Mandel Center for Nonprofit Organizations at Case Western Reserve University. *b. Wharton School at the University of Pennsylvania. c. Yale Program on Nonprofit Organizations. d. Center on Philanthropy at Indiana University. Answer Location: Nonprofit Management as a Field of Study Learning Objective: 1 - 2 Cognitive Domain: Knowledge Question Type: MC 6. 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? a . T he 1960s. b. T he 1970s. *c. T he 1980s. d. T he 1990s Answer Location: Nonprofit Management as a Field of Study Learning Objective: 1 - 4 Cognitive Domain: Knowledge Question Type: MC 7. Those who view nonprofit organizations primarily as social institutions portray nonprofit managers 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 Approach Learning Objective: 1 - 4 Cognitive Domain: Comprehension Question Type: MC 8. Most small businesses : 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 Pride Learning Objective: 1 - 1 Cognitive Domain: Knowledge

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    Nonprofit Management 4e Michael J. Worth Instructor Resource 3 Question Type: MC 9. The complexity of the nonprofit manager’s job and the multiple pressures inherent in the job frequently 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 Pride Learning Objective : 1 - 4 Cognitive Domain: Comprehension Question Type: MC 10. One overarching force that has driven the nonprofit management revolution of recent decades has been : *a. the introduction of competition resulting from changes in funding patterns, growth of the sector, 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 of public management from the discipline of political science. Answer Location: A Revolution in Management Learning Objective: 1 - 4 Cognitive Domain: Knowledge Question Type: MC 11. Throughout most of the history of management as a recognized discipline, most theorists have : 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 Profession Learning Objective: 1 - 1 Cognitive Domain: Knowledge Question Type: MC 12. 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 Study Learning Objective: 1 - 3 Cognitive Domain: Knowledge

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    Nonprofit Management 4e Michael J. Worth Instructor Resource 4 Question Type: MC 13. This organization was founded in 1970 and began to accredit public administration degree programs. a. T he Commission on Private Philanthropy and Public Needs b. T he Yale Program on Nonprofit Organizations *c. T he National Association of Schools of Public Affairs and Administration d. T he Nonprofit Academic Centers Council Answer Location: Nonprofit Management as a Field of Study Learning Objective: 1 - 3 Cognitive Domain: Knowledge Question Type: MC 14. Concomitant with the increase in nonprofit management literature in the 1990s and 2000s, what also grew rapidly? a. G overnment - funded programs to educate nonprofit managers *b. E ducational programs related to nonprofit management c. A cademic journals that specialized in nonprofit management d. C ompetition for philanthropic missions by for - profits Answer Location: Nonprofit Management as a Field of Study Learning Objective: 1 - 3 Cognitive Domain: Knowledge Question Type: MC 15. The perception that nonprofits are less well managed than businesses is : a. cultivated mostly by for - profit corporations. *b. not based 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 Summary Learning Objective: 1 - 1 Cognitive Domain: Comprehension Question Type: MC 16. 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 Management Learning Objective: 1 - 4 Cognitive Domain: Comprehension Question Type: MC

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    Nonprofit Management 4e Michael J. Worth Instructor Resource 5 17. The double bottom line concept means CEOs must : a. m eet organizational goals and objects. * b. a chieve the mission within financial means. 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 Profession Learning Objective: 1 - 1 Cognitive Domain: Knowledge Question Type: MC 18. According to Herman, one of the differences of managing a nonprofit versus a for - profit corporation is : *a. nonprofit decisions must be consistent with the mission and ethical values of the organization . 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 Profession Learning Objective: 1 - 5 Cognitive Domain: Comprehension Question Type: MC 19. Accordi ng to Higgi ns, nonprofit organizations have : a. many volunteers. 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 Profession Learning Objective: 1 - 5 Cognitive Domain: Knowledge Question Type: MC 20. Nonprofit management literature is drawn from which of the three areas? a. Social science research, customer complaints, and reports prepared by practitioners b. Social science research, organizational theory, and community feedback c. Internal Revenue Service financial reports, organizational, theory, and social science research * d. Social science research, organizational theory, and practitioner reports Answer Location: Nonprofit Management as a Field of Study Learning Objective: 1 - 3 Cognitive Domain: Knowledge Question Type: MC 21. According to F r umkin, the “expressive” purpose of nonprofits is to : *a. serve as social institutions.

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    Nonprofit Management 4e Michael J. Worth Instructor Resource 6 b. serve as government institutions. c. serve as business sector institutions. d. as social enterprises . Answer Location: Toward a Balanced Approach Learning Objective: 1 - 5 Cognitive Domain: Knowledge Question Type: MC 22. Individuals who believe that nonprofit organizations should apply business methods of management perceive nonprofit organizations as : a. social institutions. b. government institutions. * c. social enterprises. d. education institutions. Answer Location: Toward a Balanced Approach Learning Objective: 1 - 4 Cognitive Domain: Knowledge Question Type: MC 23. The University of Georgia, Institute for Nonprofit Organizations offers graduate school coursework through the departments of social work, political science, and management. This is an example of studying the field of nonprofit management applying a ( an ) : a. entrepreneurial approach. *b. interdisciplinary approach. c. natural science approach. d. inspired approach. Answer Location: Nonprofit Management as a Field of Study Learning Objective: 1 - 3 Cognitive Domain: Comprehension Question Type: MC 24. 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 funding research. Answer Location: A Revolution in Management Learning Objective: 1 - 5 Cognitive Domain: Knowledge Question Type: MC 25. Who wr ote that nonprofit organization s require a multi - faceted, flexible approach to management? a. Christine Letts b. Bill Shore

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    Nonprofit Management 4e Michael J. Worth Instructor Resource 7 c. Robert Herman *d. Helmut Anheier Answer Location: A Distinct Profession Learning Objective: 1 - 4 Cognitive Domain: Knowledge Question Type: MC 26. Who was the first individual to suggest that management be a distinct field of study with its own literature ? a. Bill Shore b. Christine Letts * c. Henry Towne d. Helmut Anheier Answer Location: Nonprofit Management as a Field of Study Learning Objective: 1 - 5 Cognitive Domain: Knowledge Question Type: MC 27. Which university was the first to offer a bachelor’s degree in philanthropy? a. Harvard University b. University of Wisconsin *c. Indiana University d. University of Maryland Answer Location: Nonprofit Management as a Field of Study Learning Objective: 1 - 3 Cognitive Domain: Knowledge Question Type: MC 28. Bill identified a n opportunity to meet the needs of young mothers in a new way . He applied an innovative fundraising technique to secure the funds to open a counseling center where his new program was offered. According to your author’s definitions, Bill is demonstrating the characteristics of : *a. s ocial innovation b . s ocial intrapreneurship c. s ocial science d. s ocial counseling Answer Location: Nonprofit Management as a Field of Study Learning Objective: 1 - 4 Cognitive Domain: Comprehension Question Type: MC 29. Capital markets would provide nonprofit organizations funding based on : a. the number of new clients recruited . b. capacity . c. sustainability .

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    Nonprofit Management 4e Michael J. Worth Instructor Resource 8 *d. rationality. Answer Location: Toward a Balanced Approach Learning Objective: 1 - 4 Cognitive Domain: Knowledge Question Type: MC 30. Which authors suggest that it is time for nonprofit organizations to shift their focus from “telling time” to “building clocks ? ” a. Letts, Ryan, and Gross b. Shore and Letts * c. Collins and Porras d. Herman and Anheier Answer Location: A Revolution in Management Learning Objective: 1 - 5 Cognitive Domain: Knowledge Question Type: MC 31. The revolution in nonprofit management has been caused, in part, by an economic downturn that led to a reduction in funding and an increase in the need for services. * a. True b. False Answer Location: A Revolution in Management Learning Objective: 1 - 1 Cognitive Domain: Knowledge Question Type: TF 32. One of the ways that nonprofit organizations differ from for - profit corporations is their stakeholders. *a. True b. False Answer Location: A Distinct Profession Learning Objective: 1 - 1 Cognitive Domain: Knowledge Question Type: TF 33. One of the sources for nonprofit management literature comes from academics at colleges and universities. * a. True b. False Answer Location: Nonprofit Management as a Field of Study Learning Objective: 1 - 3 Cognitive Domain: Knowledge Question Type: TF

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    Nonprofit Management 4e Michael J. Worth Instructor Resource 9 34. The perception that nonprofit organizations are less well - managed than businesses is _________. a. True *b. False Answer Location: Chapter Summary Learning Objective: 1 - 1 Cognitive Domain: Comprehension Question Type: TF 35. The beginning of management as a field of study dates approximately to the late 19 th century. *a . True b . False Answer Location: Nonprofit Management as a Field of Study Learning Objective: 1 - 3 Cognitive Domain: Knowledge Question Type: TF 36. Most small businesses fail within the first two years of business. a. True *b. False Answer Location: Proceeding with Realism and Pride Learning Objective: 1 - 1 Cognitive Domain: Knowledge Question Type: TF 37 . Most nonprofits receive revenue from government funding only. a. True *b. False Answer Location: A Distinct Profession Learning Objective: 1 - 1 Cognitive Domain: Comprehension Question Type: TF 38. Mendel argues that n onprofit studies must go beyond traditional accountability and include political studies. *a. True b. False Answer Location: Nonprofit Management as a Field of Study Learning Objective: 1 - 3 Cognitive Domain: Knowledge Question Type: TF 39. A recent shift in thinking about nonprofits has focused more on the capacity and sustainability of the organization as opposed to its programs and services. *a. True

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    Nonprofit Management 4e Michael J. Worth Instructor Resource 10 b. False Answer Location: A Revolution in Management Learning Objective: 1 - 4 Cognitive Domain: Knowledge Question Type: TF 40. Compare and contrast the nonprofit management from business management. Ans: Varies Answer Location: A Distinct Profession Learning Objective: 1 - 1 Cognitive Domain: Analysis Question Type: ESS 41. Identify the differences between a for - profit business providing a good or service to its customers and a nonprofit providing a good or service to its customers. What does the act of satisfying customers in each instance do to its resources? Ans: Varies Answer Location: A Distinct Profession Learning Objective: 1 - 1 Cognitive Domain: Application Question Type: ESS 42. Determine which type of organization — a business or a nonprofit — where success is more difficult to come by? Why? Ans: Varies Answer Location: A Distinct Profession Learning Objective: 1 - 1 Cognitive Domain: Application Question Type: ESS 43. Analyze the debate about whether nonprofit management programs are best taught in business 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: Varies Answer Location: Nonprofit Management as a Field of Study Learning Objective: 1 - 2 Cognitive Domain: Analysis Question Type: ESS 44 . Interpret the two primary perspectives reflected in the contemporary nonprofit management literature . Ans: Varies Answer Location: Nonprofit Management as a Field of Study Learning Objective: 1 - 3 Cognitive Domain: Analysis

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    Nonprofit Management 4e Michael J. Worth Instructor Resource 11 Question Type: ESS 45. Identify the various stakeholders a nonprofit must be accountable to . Explain why. Ans: Varies Answer Location: A Revolution in Management Learning Objective: 1 - 1 Cognitive Domain: A pplication Question Type: ESS 46. Analyze how the revolution in management influenced the way nonprofit organizations are managed. A ns: Varies Answer Location: A Revolution in Management Learning Objective: 1 - 1 Cognitive Domain: Analysis Question Type: ESS 47 . Identify perspectives and agendas that might be found in a nonprofit organization and explore how th ey may impact the job of the CEO. Ans: Varies Answer Location: A Distinct Profession Learning Objective: 1 - 4 Cognitive Domain: Analysis Question Type: ESS 48 . Compare and contrast the perspectives of scholars and practitioners regarding the plight of nonprofit sector management. Ans: Varies Answer Location: Nonprofit Management as a Field of Study Learning Objective: 1 - 4 Cognitive Domain: Analysis Question Type: ESS

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    Nonprofit Management 4e Michael J. Worth Instructor Resource 1 Chapter 2 – Overview of the Nonprofit Sector TEST BANK 1. Almost of the revenue of charitable nonprofits comes from government grants and payments for services under programs such as Medicare and Medicaid. a. one - fourth *b. one - third c. one - half d. three - fourths Answer Location: Introduction Learning Objective: 2 - 1 Cognitive Domain: Knowledge Question Type: MC 2. A certain mistrust of this has been a pervasive and continuing aspect of American culture and has provided philosophical support for private, voluntary initiatives throughout the nation’s history. *a. G overnment b. V olunteers c. L awyers d. U niversities Answer Location: America’s Nonprofit Sector: A Historical Overview Learning Objective: 2 - 9 Cognitive Domain: Comprehension Question Type: MC 3. Whose 1889 essay, titled “The Gospel of Wealth,” remains a classic statement of the philosophy underpinning the American tradition of philanthropy? a. John D. Rockefeller b. Warren Buffet *c. Andrew Carnegie d. Theodore Roosevelt Answer Location: 2 - 9 Learning Objective: America’s Nonprofit Sector: A Historical Overview Cognitive Domain: Knowledge Question Type: MC 4. What is defined as giving intended to meet current individual human needs or to alleviate current human suffering? a. P hilanthropy b. V oluntarism c. N onprofitism *d. C harity

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    Nonprofit Management 4e Michael J. Worth Instructor Resource 2 Answer Location: America’s Nonprofit Sector: A Historical Overview Learning Objective: 2 - 2 Cognitive Domain: Comprehension Question Type: MC 5. Which term is defined as nonprofits that have a social objective but blend traditional nonprofit methods and commercial principles in their generation of revenue? a. C haritable sector *b. S ocial enterprise c. T ax - exempt sector d. C ivil society Answer Location: Alternatives to “Nonprofit” Learning Objective: Comprehension Cognitive Domain: 2 - 2 Question Type: MC 6. There are 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. civil service organizations. Answer Location: Alternatives to “Nonprofit” Learning Objective: 2 - 2 Cognitive Domain: Knowledge Question Type: MC 7. The number of nonprofits operating in the United States today is approximately : a. 3.5 million . *b. 1.9 million . c. 5.2 million . d. 2.6 million . Answer Location: Chapter Summary Learning Objective: 2 - 9 Cognitive Domain: Knowledge Question Type: MC 8. In 2009, the nonprofit sector employed what percentage of the total workforce? a. 5 percent b. 20 percent c. 30 percent *d. 10 percent Answer Location: Size of the U.S. Nonprofit Sector Learning Objective: 2 - 9 Cognitive Domain: Knowledge

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    Nonprofit Management 4e Michael J. Worth Instructor Resource 3 Question Type: MC 9. What were t he total combined asse ts of all nonprofits in 2008? a. $500 million b. $20 billion *c. $4.3 trilli on d. $800 billion Answer Location: Size of the U.S. Nonprofit Sector Learning Objective: 2 - 9 Cognitive Domain: Knowledge Question Type: MC 10. What is intended to encourage charitable giving and sustain the services provided by charitable organizations? a. B eing classified as a 501 (c)(3) organization b. R eceiving free health care vouchers in exchange for gifts c. T he lifting of limitations on lobbying *d. T ax deductions for gifts Answer Location: Differentiating the Nonprofit Sector Learning Objective: 2 - 9 Cognitive Domain: Comprehension Question Type: MC 11. Whose article “Bowling Alone: America’s Declining Social Capital” discussed a decline in civic engagement among Americans? a. Michael Moore b. Bill Gates *c. Robert Putnam d. Lester Salamon Answer Location: Size of the U.S. Nonprofit Sector Learning Objective: 2 - 9 Cognitive Domain: Knowledge Question Type: MC 12. A nonprofit that qualifies under Section 501 (c)(3) cannot support candidates for public office and must limit its expenditures on : a. staff salaries . *b. lobbying. c. health care. d. legal counsel. Answer Location: Differentiating the Nonprofit Sector Learning Objective: 2 - 4 Cognitive Domain: Comprehension Question Type: MC

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    Nonprofit Management 4e Michael J. Worth Instructor Resource 4 13. This principle prevents government funds from going directly to religious congregations or to organizations that would use them for religious activities. *a. S eparation of church and state b. C haritable choice provisions c. T ax - exempt provisions d. T he nondistribution test Answer Location: Differentiating the Nonprofit Sector Learning Objective: 2 - 1 Cognitive Domain: Comprehension Question Type: MC 14. Which subsector of charitable nonprofits is the least professionalized? a. E nvironmental organizations b. A dvocacy organizations *c. R eligious organizations d. A rts and culture organizations Answer Location: Differentiating the Nonprofit Sector Learning Objective: 2 - 5 Cognitive Domain: Comprehension Question Type: MC 15. 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 : a. religious organizations . b. environmental organizations . c. arts and culture organizations . *d. advocacy organizations . Answer Location: Differentiating the Nonprofit Sector Learning Objective: 2 - 4 Cognitive Domain: Knowledge Question Type: MC 16 . The National Taxonomy of Exempt Entities (NTEE) divides nonprofit organizations into categories 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 Sector Learning Objective: 2 - 3 Cognitive Domain: Knowledge Question Type: MC 17 . If measured by the total number of organizations, the largest subsector of charitable nonprofits is the :

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