Nonprofit Management Principles And Practice 4th Edition By Worth – Test Bank

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Nonprofit Management Principles And Practice 4th Edition By Worth – Test Bank

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.
  2. one-fourth

*b. one-third

  1. one-half
  2. three-fourths

Answer Location: Introduction

Learning Objective: 2-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. 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. Government

  1. Volunteers
  2. Lawyers
  3. Universities

Answer Location: America’s Nonprofit Sector: A Historical Overview

Learning Objective: 2-9

Cognitive Domain: Comprehension

Question Type: MC

 

  1. Whose 1889 essay, titled “The Gospel of Wealth,” remains a classic statement of the philosophy underpinning the American tradition of philanthropy?
  2. John D. Rockefeller
  3. Warren Buffet

*c. Andrew Carnegie

  1. Theodore Roosevelt

Answer Location: 2-9

Learning Objective: America’s Nonprofit Sector: A Historical Overview

Cognitive Domain: Knowledge

Question Type: MC

 

  1. What is defined as giving intended to meet current individual human needs or to alleviate current human suffering?
  2. Philanthropy
  3. Voluntarism
  4. Nonprofitism

*d. Charity

Answer Location: America’s Nonprofit Sector: A Historical Overview

Learning Objective: 2-2

Cognitive Domain: Comprehension

Question Type: MC

 

  1. Which term is defined as nonprofits that have a social objective but blend traditional nonprofit methods and commercial principles in their generation of revenue?
  2. Charitable sector

*b. Social enterprise

  1. Tax-exempt sector
  2. Civil society

Answer Location: Alternatives to “Nonprofit”

Learning Objective: Comprehension

Cognitive Domain: 2-2

Question Type: MC

 

  1. 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.

  1. social sector organizations.
  2. voluntary sector organizations.
  3. civil service organizations.

Answer Location: Alternatives to “Nonprofit”

Learning Objective: 2-2

Cognitive Domain: Knowledge

Question Type: MC

 

  1. The number of nonprofits operating in the United States today is approximately:
  2. 3.5 million.

*b. 1.9 million.

  1. 5.2 million.
  2. 2.6 million.

Answer Location: Chapter Summary

Learning Objective: 2-9

Cognitive Domain: Knowledge

Question Type: MC

 

  1. In 2009, the nonprofit sector employed what percentage of the total workforce?
  2. 5 percent
  3. 20 percent
  4. 30 percent

*d. 10 percent

Answer Location: Size of the U.S. Nonprofit Sector

Learning Objective: 2-9

Cognitive Domain: Knowledge

Question Type: MC

 

  1. What were the total combined assets of all nonprofits in 2008?
  2. $500 million
  3. $20 billion

*c. $4.3 trillion

  1. $800 billion

Answer Location: Size of the U.S. Nonprofit Sector

Learning Objective: 2-9

Cognitive Domain: Knowledge

Question Type: MC

 

  1. What is intended to encourage charitable giving and sustain the services provided by charitable organizations?
  2. Being classified as a 501 (c)(3) organization
  3. Receiving free health care vouchers in exchange for gifts
  4. The lifting of limitations on lobbying

*d. Tax deductions for gifts

Answer Location: Differentiating the Nonprofit Sector

Learning Objective: 2-9

Cognitive Domain: Comprehension

Question Type: MC

 

  1. Whose article “Bowling Alone: America’s Declining Social Capital” discussed a decline in civic engagement among Americans?
  2. Michael Moore
  3. Bill Gates

*c. Robert Putnam

  1. Lester Salamon

Answer Location: Size of the U.S. Nonprofit Sector

Learning Objective: 2-9

Cognitive Domain: Knowledge

Question Type: MC

 

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

*b. lobbying.

  1. health care.
  2. legal counsel.

Answer Location: Differentiating the Nonprofit Sector

Learning Objective: 2-4

Cognitive Domain: Comprehension

Question Type: MC

 

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

*a. Separation of church and state

  1. Charitable choice provisions
  2. Tax-exempt provisions
  3. The nondistribution test

Answer Location: Differentiating the Nonprofit Sector

Learning Objective: 2-1

Cognitive Domain: Comprehension

Question Type: MC

 

  1. Which subsector of charitable nonprofits is the least professionalized?
  2. Environmental organizations
  3. Advocacy organizations

*c. Religious organizations

  1. Arts and culture organizations

Answer Location: Differentiating the Nonprofit Sector

Learning Objective: 2-5

Cognitive Domain: Comprehension

Question Type: MC

 

  1. 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:
  2. religious organizations.
  3. environmental organizations.
  4. arts and culture organizations.

*d. advocacy organizations.

Answer Location: Differentiating the Nonprofit Sector

Learning Objective: 2-4

Cognitive Domain: Knowledge

Question Type: MC

 

  1. The National Taxonomy of Exempt Entities (NTEE) divides nonprofit organizations into categories based on the organization’s:

*a. purposes, activities, and programs.

  1. budget and staff.
  2. mission and vision statements.
  3. type of clients served.

Answer Location: Differentiating the Nonprofit Sector

Learning Objective: 2-3

Cognitive Domain: Knowledge

Question Type: MC

 

  1. If measured by the total number of organizations, the largest subsector of charitable nonprofits is the:
  2. health services sector.

*b. human service sector.

  1. religious sector.
  2. international and foreign affairs sector.

Answer Location: Differentiating the Nonprofit Sector

Learning Objective: 2-5

Cognitive Domain: Comprehension

Question Type: MC

 

  1. 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?

*a. Health services sector

  1. Human service sector
  2. International and foreign affairs sector
  3. Religious sector

Answer Location: Differentiating the Nonprofit Sector

Learning Objective: 2-5

Cognitive Domain: Comprehension

Question Type: MC

 

  1. These are organizations that exist for the sole purpose of directing money to other nonprofits.
  2. Banks
  3. International development entities

*c. Funding intermediaries

  1. Advocacy organizations

Answer Location: Differentiating the Nonprofit Sector

Learning Objective: 2-2

Cognitive Domain: Comprehension

Question Type: MC

 

 

  1. What term is used to identify organizations that do not have to pay federal, state, or local income taxes?

*a. Tax-exempt

  1. Public
  2. Private
  3. Income-exempt

Answer Location: Alternatives to “Nonprofit”

Learning Objective: 2-2

Cognitive Domain: Knowledge

Question Type: MC

 

 

  1. Private foundations most often are funded by:
  2. a vast number of corporate sponsors.

*b. a single donor or a small number of donors.

  1. U.S. Congress.
  2. community organizations.

Answer Location: Differentiating the Nonprofit Sector

Learning Objective: 2-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Unlike public charities, private foundations are not permitted to engage in:
  2. fund-raising.
  3. providing direct services.

*c. lobbying.

  1. international exchange programs.

Answer Location: Differentiating the Nonprofit Sector

Learning Objective: 2-1

Cognitive Domain: Comprehension

Question Type: MC

 

  1. Salamon’s Anatomy classifies nonprofit organizations by:

*a. who receives the principal benefit of their activities.

  1. the nature of their activities.
  2. the amount of revenue received in a fiscal year.
  3. whether they are eligible to receive tax-exempt gifts.

Answer Location: Differentiating the NonProfit Sector

Learning Objective: 2-2

Cognitive Domain: Comprehension

Question Type: MC

 

  1. Exempt activities are those that:
  2. employ only volunteers.
  3. provide direct service.
  4. generate income for the organization.

*d. directly address a nonprofit organization’s social missions.

Answer Location: Commercialization and Tax Exemption

Learning Objective: 2-2

Cognitive Domain: Knowledge

Question Type: MC

 

  1. The two extreme spectrums that define a social enterprise are purely philanthropic and:
  2. purely charitable.

*b. purely commercial.

  1. purely hybrid.
  2. purely foundational.

Answer Location: Differentiating the Nonprofit Sector

Learning Objective: 2-6

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Nonprofit organizations interested in achieving both social and economic value are referred to as:
  2. commercial.
  3. philanthropic.
  4. charitable.

*d. hybrids.

Answer Location: Differentiating the Nonprofit Sector

Learning Objective: 2-6

Cognitive Domain: Knowledge

Question Type: MC

 

  1. According to Sabeti a critical mass of organizations is occurring within the public, nonprofit, and private sectors creating a:
  2. hybrid sector.
  3. multi-purpose sector.

*c. a fourth sector.

  1. a new era sector.

Answer Location: Emerging New Models

Learning Objective: 2-7

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Another name for social welfare organizations is:
  2. nonprofit institutions serving households.

*b. advocacy organizations.

  1. hybrid organizations.
  2. charitable nonprofits.

Answer Location: Differentiating the Nonprofit Sector

Learning Objective: 2-2

Cognitive Domain: Knowledge

Question Type: MC

 

  1. In the social enterprise spectrum described by Dees and colleagues, which type of organization uses only volunteers for its workforce?

*a. Purely philanthropic

  1. Purely commercial
  2. Purely charitable
  3. Purely public

Answer Location: Differentiating the Nonprofit Sector

Learning Objective: 2-6

Cognitive Domain: Knowledge

Question Type: MC

 

  1. The legal foundations of America’s nonprofit sector are drawn from:
  2. natural law.
  3. nonprofit law.

*c. English law.

  1. philanthropy.

Answer Location: America’s Nonprofit Sector: A Historical Overview

Learning Objective: 2-9

Cognitive Domain: Knowledge

Question Type: MC

 

  1. “The Gospel of Wealth” was written by John D. Rockefeller.
  2. True

*b. False

Answer Location: America’s Nonprofit Sector: A Historical Overview

Learning Objective: 2-9

Cognitive Domain: Knowledge

Question Type: TF

 

  1. Giving intended to meet current individual human needs or to alleviate current human suffering is referred to as charity.

*a. True

  1. False

Answer Location: America’s Nonprofit Sector: A Historical Overview

Learning Objective: 2-2

Cognitive Domain: Comprehension

Question Type: TF

 

  1. A nonprofit classified as 501 (c)(3) cannot support candidates for public office and must limit its expenditures on lobbying.

*a. True

  1. False

Answer Location: Differentiating the Nonprofit Sector

Learning Objective: 2-4

Cognitive Domain: Knowledge

Question Type: TF

 

  1. The National Geographic Society is a nonprofit organization that also has a for-profit subsidiary.

*a. True

  1. False

Answer Location: Introduction

Learning Objective: 2-1

Cognitive Domain: Knowledge

Question Type: TF

 

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

*b. False

Answer Location: America’s Nonprofit Sector: A Historical Overview

Learning Objective: 2-1

Cognitive Domain: Knowledge

Question Type: TF

 

  1. Increased government spending on social programs in the 1960s and early 1970s began with President Lyndon B. Johnson.

*a. True

  1. False

Answer Location: America’s Nonprofit Sector: A Historical Overview

Learning Objective: 2-9

Cognitive Domain: Knowledge

Question Type: TF

 

  1. Beginning in the 1980s, federal spending for many social programs was sharply reduced under President Gerald R. Ford.
  2. True

*b. False

Answer Location: America’s Nonprofit Sector: A Historical Overview

Learning Objective: 2-9

Cognitive Domain: Knowledge

Question Type: TF

 

  1. Some believe that commercialization of the nonprofit sector may result in profit being placed ahead of mission.

*a. True

  1. False

Answer Location: Differentiating the Nonprofit Sector

Learning Objective: 2-9

Cognitive Domain: Comprehension

Question Type: TF

 

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

*a. True

  1. False

Answer Location: Size of the U.S. Nonprofit Sector

Learning Objective: 2-4

Cognitive Domain: Knowledge

Question Type: TF

 

  1. Gifts to religious congregations are tax deductible because congregations are required to register with the IRS.
  2. True

*b. False

Answer Location: Differentiating the Nonprofit Sector

Learning Objective: 2-4

Cognitive Domain: Comprehension

Question Type: TF

 

 

  1. Identify and explain the three ancient traditions in which the roots of America’s nonprofit sector lie.

Ans: Varies

Answer Location: Chapter Summary

Learning Objective: 2-9

Cognitive Domain: Analysis

Question Type: ESS

 

  1. Back up the case made for giving by Andrew Carnegie in his “Gospel of Wealth.”

Ans: Varies

Answer Location: America’s Nonprofit Sector: A Historical Overview

Learning Objective: 2-9

Cognitive Domain: Application

Question Type: ESS

 

  1. Compare and contrast charity and philanthropy.

Ans: Varies

Answer Location: America’s Nonprofit Sector: A Historical Overview

Learning Objective: 2-2

Cognitive Domain: Analysis

Question Type: ESS

 

  1. Explain the three things that an organization must demonstrate to be recognized as tax-exempt under Section 501 (c)(3)?

Ans: Varies

Answer Location: Differentiating the Nonprofit Sector

Learning Objective: 2-3

Cognitive Domain: Analysis

Question Type: ESS

 

  1. Ascertain the characteristics of organizations that are purely philanthropic.

Ans: Varies

Answer Location: Differentiating the Nonprofit Sector

Learning Objective: 2-2

Cognitive Domain: Application

Question Type: ESS

 

  1. Select either The National Geographic Society or The Smithsonian Institution and explain the complexity of its structure as opposed to a traditional nonprofit.

Ans: Varies

Answer Location: Introduction

Learning Objective: 2-8

Cognitive Domain: Analysis

Question Type: ESS

 

  1. Analyze the terms “third sector, fourth sector, charitable sector, voluntary sector, independent sector, and tax-exempt sector.” Explain what characteristic(s) distinguish each term.

Ans. Varies

Answer Location: America’s Nonprofit Sector: A Historical Overview

Learning Objective: 2-9

Cognitive Domain: Analysis

Question Type: ESS

 

 

Chapter 8 –Collaborations, Partnerships, and Mergers

TEST BANK

 

  1. Equality in decision-making is one of the characteristics of _________ in both collaborations and partnerships.
  2. delivery
  3. capacity

*c. mutuality

  1. founder syndrome

Answer Location: Introduction

Learning Objective: 8-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Complex relationships, including mergers, are referred to as:
  2. capacity.

*b. strategic restructuring

  1. models.
  2. teamwork.

Answer Location: Introduction

Learning Objective: 8-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Cratchfield and Grant write that nonprofit organizations have more impact if they:
  2. raise large amounts of money.
  3. develop strategy.
  4. implement performance measures.

*d. work with other organizations.

Answer Location: Introduction

Learning Objective: 8-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Forrer states a key characteristic of collaborations is that they:

*a. are voluntary.

  1. are required by law.
  2. are temporary.
  3. be accountable.

Answer Location: Introduction

Learning Objective: 8-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. A collaboration in which power, decision-making, and risk are shared are referred to as a(an):
  2. agent to agent relationship.

*b. principal to principal relationship.

  1. principal to student relationship.
  2. principal to parent relationship.

Answer Location: Introduction

Learning Objective: 8-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. La Piana Consulting defines the intensity of the commitment that two or more nonprofits must make to each other as:
  2. accountability.
  3. capacity.

*c. integration.

  1. leadership.

Answer Location: A Continuum of Relationships

Learning Objective: 8-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. La Piana Consulting defines a relationship between a nonprofit organizations and a public corporation that is simple and not permanent as a(an):

*a. simple collaboration.

  1. team.
  2. a group.
  3. strategic alliance.

Answer Location: A Continuum of Relationships

Learning Objective: 8-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. La Piana Consulting defines a relationship between a nonprofit organizations and a public corporation that is complex as a(an):
  2. simple collaboration.
  3. team.
  4. a group.

*d. strategic alliance.

Answer Location: A Continuum of Relationships

Learning Objective: 8-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. The C.O.R.E Continuum identifies relationships that affect organizations’:

*a. corporate structures.

  1. organizational charts.
  2. reliability.
  3. environments.

Answer Location: A Continuum of Relationships

Learning Objective: 8-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Organizations that collaborate to increase and share resources are applying:
  2. closed-systems theory.
  3. Maslow’s hierarchy of needs.

*c. resource dependency theory.

  1. McClelland’s three needs theory.

Answer Location: Drivers of Collaborations and Mergers

Learning Objective: 8-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Organizations that collaborate to develop a shared response to problems and legitimacy are applying:
  2. combination theory.
  3. Herzberg’s theory of satisfiers and dissatisfiers.
  4. Acceptance theory of organizations.

*d. institutional theory.

Answer Location: Drivers of Collaborations and Mergers

Learning Objective: 8-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Yankey and Willen would describe decreased government funding as a(an) _______ driver of collaboration.
  2. outsourced
  3. internal

*c. external

  1. intermingled.

Answer Location: Drivers of Collaborations and Mergers

Learning Objective: 8-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. A nonprofit organization lost its major funder to a corporate scandal. As a result, the nonprofit needs to merge with another organization in order to regain its positive image. According to McCormick the nonprofit’s driver for seeking the new merger would be:
  2. liability.
  3. viability.

*c. survivability.

  1. capacity.

Answer Location: Drivers of Collaborations and Mergers

Learning Objective: 8-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. A proposed merger between Operation Smile and Smile Train was cancelled due to:
  2. financial reasons.

*b. differing strategies.

  1. legal liabilities.
  2. cultural differences.

Answer Location: Obstacles to Collaboration and Mergers

Learning Objective: 8-3

Cognitive Domain: Knowledge

Question Type: MC

 

  1. The boards of directors for Family Eldercare and Meals on Wheels decided not to merge:
  2. financial reasons.

*b. differing missions.

  1. community opposition.
  2. internal conflict.

Answer Location: Obstacles to Collaboration and Mergers

Learning Objective: 8-3

Cognitive Domain: Comprehension

Question Type: MC

 

  1. A proposed merger of two nonprofit organizations failed because senior leadership focused on self-interests. This proposed merger failed due to:
  2. differing missions.
  3. costs.

*c. egos.

  1. political objections.

Answer Location: Obstacles to Collaborations and Mergers

Learning Objective: 8-3

Cognitive Domain: Comprehension

Question Type: MC

 

  1. Collaborations or mergers that combine units within a single corporate entity are called:
  2. joint mergers.
  3. intermergers.

*c. intramergers.

  1. corporate integrations.

Answer Location: Collaborations and Mergers Within National Nonprofits

Learning Objective: 8-2

Cognitive Domain: Knowledge

Question Type: MC

 

  1. National nonprofits with local chapters follow one of two principal organization forms—a single corporation or a(an):
  2. strategic alliance.
  3. venture philanthropy.
  4. amalgamation.

*d. federation.

Answer Location: Collaborations and Mergers within National Nonprofits

Learning Objective: 8-2

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Mergers of chapters within a federated organization are:

*a. intermergers.

  1. intramergers.
  2. corporate takeovers.
  3. not possible.

Answer Location: Collaborations and Mergers within National Nonprofits

Learning Objective: 8-2

Cognitive Domain: Knowledge

Question Type: MC

 

  1. As the economy improves, probably returning ultimately to a higher level of prosperity, pressures for nonprofits to collaborate and merge:
  2. will likely start to fall.

*b. are not likely to abate.

  1. will likely skyrocket.
  2. will likely force many nonprofits to seek government bailouts.

Answer Location: Collaborations and Mergers within National Nonprofits

Learning Objective: 8-2

Cognitive Domain: Knowledge

Question Type: MC

 

  1. A national organization and one of its local chapters is writing a statement outlining how they will share resources. This is an example of:

*a. transparency.

  1. capacity.
  2. establishing autonomy.
  3. egocentrism.

Answer Location: Collaborations and Mergers within National Nonprofits

Learning Objective: 8-2

Cognitive Domain: Comprehension

Question Type: MC

 

  1. A nonprofit organization, a public organization, and a private sector organization have decided to join forces to resolve an unmet community needs. According to your textbook author, this relationships may be referred to as a(an):
  2. trifecta.
  3. triple alliance.

*c. cross-sector collaboration.

  1. trio partnership.

Answer Location: A Continuum of Cross-Sector Collaboration

Learning Objective: 8-4

Cognitive Domain: Comprehension

Question Type: MC

 

  1. An autonomous community homeless shelter worked with a city council to establish winter warming-shelters for homeless individuals. This is an example of a(an):

*a. independent public service provider relationship.

  1. dependent public service provider relationship.
  2. a cooperative.
  3. a private partnership.

Answer Location: A Continuum of Cross-Sector Collaboration

Learning Objective: 8-4

Cognitive Domain: Comprehension

Question Type: MC

 

  1. A family health nonprofit provides neonatal to end-of-life services. The nonprofit consists of an alliance various health providers. This statement describes the concept of:
  2. compliance impact.

*b. collective impact.

  1. joint impact.
  2. health impact.

Answer Location: Achieving Collective Impact

Learning Objective: 8-5

Cognitive Domain: Comprehension

Question Type: MC

 

  1. Strive Partnership measures the partnership’s performance through the use of a(an):
  2. measuring stick.

*b. annual report card.

  1. monthly benchmarking report.
  2. dashboard analysis.

Answer Location: Achieving Collective Impact

Learning Objective: 8-5

Cognitive Domain: Comprehension

Question Type: MC

 

  1. What is a disadvantage of the concept of collective impact?
  2. Potential for growth of the nonprofit sector.
  3. Collective decision-making in the nonprofit sector.
  4. Broader job perspectives in the nonprofit sector.

*d. Change in key values of the nonprofit sector.

Answer Location: Achieving Collective Impact

Learning Objective: 8-6

Cognitive Domain: Comprehension

Question Type: MC

 

  1. According to Carson, the hardest thing for a nonprofit to say to others in collaboration is _______.

*a. no

  1. yes
  2. maybe
  3. sometimes

Answer Location: Achieving Collective Impact

Learning Objective: 8-7

Cognitive Domain: Knowledge

Question Type: MC

 

  1. A(An) _______ is formed when two or more organizations combine legal control.
  2. adhoc alliance
  3. intrapartnership

*c. merger

  1. network.

Answer Location: Chapter Summary

Learning Objective: 8-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Each of the terms below refers to a type of nonprofit-corporation relationship except
  2. philanthropic collaborations.
  3. strategic collaborations.
  4. commercial collaborations.

*d. government agent collaboration.

Answer Location: Chapter Introduction

Learning Objective: 8-5

Cognitive Domain: Knowledge

Question Type: MC

 

  1. A nonprofit organization is reviewing its strategic plan to determine if it’s ready to develop a collaboration. The organization is performing which stage of the development of relationships process?
  2. Implementation
  3. Identification of potential partners

*c. Self-examination

  1. Negotiation

Answer Location: Process

Learning Objective: 8-3

Cognitive Domain: Comprehension

Question Type: MC

 

  1. High-performing nonprofit organizations can have only “isolated impact.”

*a. True

  1. False

Answer Location: Achieving Collective Impact

Learning Objective: 8-5

Cognitive Domain: Comprehension

Question Type: MC

 

  1. McLaughlin writes that the models of service delivery are shifting from program innovation to program management.

*a. True

  1. False

Answer Location: Growing Interest in Collaboration

Learning Objective: 8-1

Cognitive Domain: Knowledge

Question Type: TF

 

  1. A merger requires the total dissolution of one or more former organizations.

 

*a. True

  1. False

Answer Location: A Continuum of Relationships

Learning Objective: 8-1

Cognitive Domain: Knowledge

Question Type: TF

 

  1. Ad-hoc relationships are long-term.
  2. True

*b. False

Answer Location: A Continuum of Relationships

Learning Objective: 8-1

Cognitive Domain: Knowledge

Question Type: TF

 

  1. Volunteer emotions may be a deciding factor in a board of director’s decision to merge with another organization.

*a. True

  1. False

Answer Location: Motivations

Learning Objective: 8-3

Cognitive Domain: Knowledge

Question Type: TF

 

  1. The word “merger” has a negative connotation.

*a. True

  1. False

Answer Location: Culture

Learning Objective: 8-3

Cognitive Domain: Knowledge

Question Type: TF

 

  1. When organizations sign a contract they automatically develop a collaboration.
  2. True

*b. False

Answer Location: A Continuum of Cross-Sector Collaboration

Learning Objective: 8-4

Cognitive Domain: Knowledge

Question Type: TF

 

  1. Collaboration is when two or more organizations work together toward common objectives.

*a. True

  1. False

Answer Location: Chapter Introduction

Learning Objective: 8-1

Cognitive Domain: Knowledge

Question Type: TF

 

  1. When two nonprofit organizations merge, they each keep their own identity and status.
  2. True

*b. False

Answer Location: Chapter Introduction

Learning Objective: 8-1

Cognitive Domain: Comprehension

Question Type: TF

 

  1. One of the significant obstacles to successful collaboration is culture.

*a. True

  1. False

Answer Location: Culture

Learning Objective: 8-3

Cognitive Domain: Knowledge

Question Type: TF

 

  1. The combining of units within a single corporate entity is called an “intramerger.”

*a. True

  1. False

Answer Location: Collaborations and Mergers within National Nonprofit

Learning Objective: 8-1

Cognitive Domain: Knowledge

Question Type: TF

 

  1. Explain the concept of strategic alliances as described by La Piana Consulting.

Ans: Varies

Answer Location: A Continuum of Relationships

Learning Objective: 8-1

Cognitive Domain: Analysis

Question Type: ESS

 

  1. List and explain two of the most common issues involved in a merger between a national nonprofit and a local chapter. Discuss how those issues may be minimized or maximized.

Ans: Varies

Answer Location: Collaborations and Mergers Within National Nonprofits

Learning Objective: 8-3

Cognitive Domain: Analysis

Question Type: ESS

 

  1. In the discussion of collaborations, what is a driver, and explain the two types of drivers?

Ans: Varies

Answer Location: Drivers of Collaborations and Mergers

Learning Objective: 8-2

Cognitive Domain: Analysis

Question Type: ESS

 

  1. Explain why a nonprofit with more diversified sources of revenue would be less inclined to collaborate or merge?

Ans: Varies

Answer Location: Drivers of Collaborations and Mergers

Learning Objective: 8-3

Cognitive Domain: Analysis

Question Type: ESS

 

  1. Explain the three driving forces of an organization’s proclivity to collaborate or merge, according to McCormick?

Ans: Varies

Answer Location: Drivers of Collaborations and Mergers

Learning Objective: 8-3

Cognitive Domain: Analysis

Question Type: ESS

 

  1. Compare and contrast affiliations and alliances.

Ans. Varies

Answer Location: Introduction

Learning Objective: 8-1

Cognitive Domain: Analysis

Question Type: ESS

 

  1. Apply the principal-agent theory to cross-sector collaborations.

Ans. Varies

Answer Location: Introduction

Learning Objective: 8-4

Cognitive Domain: Analysis

Question Type: ESS

 

  1. Draw a model that could use to design successful collective impact partnerships.

Answer Location: Achieving Collective Impact

Learning Objective: 8-5

Cognitive Domain: Application

Question Type: ESS

 

 

Chapter 16 – Social Entrepreneurship and Innovation

TEST BANK

 

  1. A(an) is someone who creates value by improving efficiency and effectiveness in the use of society’s limited resources. This can also be described as someone who identifies an opportunity; creates a venture to pursue it; and ultimately upsets the status quo and makes previous products, services, and approaches obsolete.
  2. founder
  3. capitalist
  4. industrialist

*d. entrepreneur

Answer Location: Defining and Understanding Social Entrepreneurship

Learning Objective: 16-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. The process by which companies and organizations adhering to old ways decline and disappear, while new companies and industries grow to replace them, is called:
  2. entrepreneurship.
  3. social destruction.

*c. creative destruction.

  1. innovation.

Answer Location: Defining and Understanding Social Entrepreneurship

Learning Objective: 16-1

Cognitive Domain: Comprehension

Question Type: MC

 

  1. Those embracing the school believe that social entrepreneurship is virtually synonymous with the creation of earned-income ventures by nonprofits. They believe that an entrepreneur is someone who starts a new business and, in the case of a social entrepreneur, a business with a social purpose.
  2. corporate world

*b. social enterprise

  1. social innovation
  2. nonprofit sector

Answer Location: Social Enterprise School

Learning Objective: 16-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Those who embrace the school believe that social entrepreneurs play a role in society similar to that of the business entrepreneur in the economy. In their view, the social entrepreneur is an innovator; a change agent; someone who identifies an opportunity, undertakes direct action to pursue it, and produces change that improves the condition of people and society.
  2. corporate world
  3. social enterprise

*c. social innovation

  1. nonprofit sector

Answer Location: Social Innovation School

Learning Objective: 16-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Some companies and nonprofits include individuals whose job is to drive creativity and innovation within the organization. They are called:

*a. intrapreneurs.

  1. entrepreneurs.
  2. social entrepreneurs.
  3. creative directors.

Answer Location: Social Innovation School

Learning Objective: 16-1

Cognitive Domain: Knowledge

 

  1. According to Dees and colleagues, where others see problems, entrepreneurs see:
  2. puzzles.

*b. opportunities.

  1. money.
  2. a quick fix.

Answer Location: Theories of Social Entrepreneurship

Learning Objective: 16-3

Cognitive Domain: Knowledge

Question Type: MC

 

  1. The changes during the later decades of the 20th century and the first decade of the 21st were often disruptive and provided new opportunities for business and social entrepreneurship across the globe. This can also be referred to as:
  2. global borders.
  3. social business.
  4. creative destruction.

*d. perturbation.

Answer Location: Theories of Social Entrepreneurship

Learning Objective: 16-3

Cognitive Domain: Comprehension

Question Type: MC

 

  1. may occur when the right person is in the right place at the right time with the right skills.
  2. Perfection
  3. A social value proposition

*c. Change

  1. Social nirvana

Answer Location: Theories of Social Entrepreneurship

Learning Objective: 16-3

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Social entrepreneurs who focus on creating wide-scale change embrace the social _______ school.
  2. change
  3. enterprise

*c. innovation

  1. improvement

Answer Location: Social Innovation School

Learning Objective: 16-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. In Crutchfield and Grant’s list of exemplary organizations, all have created committed on their behalf.
  2. lobbyists
  3. economists
  4. entrepreneurs

*d. advocates

Answer Location: Building High-Impact Nonprofits

Learning Objective: 16-4

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Seelos and Mair developed a model of _______ that leaders may use to improve organizational capacity.
  2. research and development
  3. environmental analysis

*c. continuous improvement

  1. human resource management

Answer Location: Sustaining Innovation

Learning Objective: 16-5

Cognitive Domain: Comprehension

Question Type: MC

 

  1. The nonprofit organization Year Up provides young people:
  2. housing.
  3. medical care.
  4. drug rehabilitation treatment.

*d. job experience.

Answer Location: Civic Engagement

Learning Objective: 16-2

Cognitive Domain: Knowledge

Question Type: MC

 

  1. The “scientific charity” movement emerged during the:
  2. 17th century.
  3. 18th century.

*c. 19th century.

  1. 20th century

Answer Location: History of Social Entrepreneurship as a Field

Learning Objective: 16-2

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Professionalized philanthropy emerged in the United States during the:
  2. 17th century.
  3. 18th century.
  4. 19th century.

*d. 20th century.

Answer Location: History of Social Entrepreneurship as a Field

Learning Objective: 16-2

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Seelos and Mair suggest that managers of nonprofit organizations implement change:
  2. by applying chaos theory.
  3. by applying Lewin’s rapid waters metaphor.

* c. by applying incrementalism.

  1. by applying resource dependency theory.

Answer Location: Sustaining Innovation

Learning Objective: 16-4

Cognitive Domain: Comprehension

Question Type: MC

 

  1. Which social entrepreneur helped improve the transport of farmers’ goods to markets in Ghana?
  2. Bill Gates

*b. Richard Seshie

  1. Gerald Chertavian
  2. Diana Propper de Callejon

Answer Location: Social Entrepreneurship Across Fields and Around the World

Learning Objective: 16-2

Cognitive Domain: Knowledge

Question Type: MC

 

  1. in developing nations are too often slow and bureaucratic, prone to corruption, and controlled by vested interests that resist change.
  2. NGOs
  3. Banks
  4. Public schools

*d. Governments

Answer Location: Learning/Education

Learning Objective: 16-5

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Yunus considers the voluntary giving that supports NGOs to be a form of ; in other words, nonprofits receive only the economic surplus that affluent people voluntarily give and do not have a sustainable revenue model of their own.

*a. trickle-down economics

  1. social value proposition
  2. microfinance
  3. entrepreneurship

Answer Location: Learning/Education

Learning Objective: 16-5

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Paul Light criticizes social entrepreneurships:

*a. as a fantasy.

  1. as a tool for inventors.
  2. for encouraging collaborations.
  3. as stewardship.

Answer Location: The Future of Social Entrepreneurship

Learning Objective: 16-5

Cognitive Domain: Knowledge

Question Type: MC

 

  1. A social business is not:
  2. cause-driven.
  3. headed by often poor owners.

*c. a charity.

  1. a social entrepreneurship.

Answer Location: Learning/Education

Learning Objective: 16-5

Cognitive Domain: Knowledge

Question Type: MC

 

  1. The Edward M. Kennedy Serve America Act, signed by President Obama in 2009, created:
  2. the Corporation for National and Community Service.
  3. the Presidential Summit on Entrepreneurship.
  4. a government grant to Ashoka.

*d. the Social Innovation Fund.

Answer Location: The Future of Social Entrepreneurship

Learning Objective: 16-5

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Paul Light argues that the term “social entrepreneurship” should be replaced with the term:

*a. public service.

  1. social service.
  2. civic service.
  3. nonprofit service.

Answer Location: The Future of Social Entrepreneurship

Learning Objective: 16-5

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Michael Worth writes that a result of the global recession of 2007–2009:

*a. is the continued decrease of government social programs.

  1. is the continue increase in government social programs.
  2. is an increase in the creation of global foundations.
  3. a growing increase in charitable gifts.

Answer Location: The Future of Social Entrepreneurship

Learning Objective: 16-5

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Michael Worth writes that social entrepreneurs are:
  2. positive forces.

*b. disruptive forces.

  1. encouraging forces.
  2. discouraging forces.

Answer Location: Chapter Summary

Learning Objective: 16-5

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Social entrepreneurship gained popularity in the 1990s due to the examples of:
  2. IBM and the Gates Foundation.
  3. Xerox and the Rockefeller Foundation.

*c. Ashoka and Echoing Green.

  1. Duke and Harvard Universities.

Answer Location: Chapter Summary

Learning Objective: 16-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Global governments are likely to see social entrepreneurships as:
  2. dominant form of business in the global marketplace.

*b. a complement to the traditional approaches of philanthropy and charity.

  1. a tool for developing free market economies.
  2. a tool for developing socialistic economies.

Answer Location: The Future of Social Entrepreneurship

Learning Objective: 16-2

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Social entrepreneurship is:
  2. a strategy for developing free market economies.
  3. a strategy to help the poor by increasing taxes for wealthy people.
  4. a strategy to develop socialistic markets.

*d. a strategy to solve social problems.

Answer Location: Chapter Summary

Learning Objective: 16-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Who describes social entrepreneurs as “restless people seeking to deal with problems …”?
  2. Steve Case
  3. Henry Ford

*c. Peter Goldmark

  1. Joseph Schumpeter

Answer Location: Chapter Introduction

Learning Objective: 16-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Who could be considered as the father of economic entrepreneurship?

*a. Jean-Baptiste Say

  1. Michael Worth
  2. Henry Ford
  3. Bill Gates

Answer Location: Defining and Understanding Social Entrepreneurship

Learning Objective: 16-1

Cognitive Domain: Comprehension

Question Type: MC

 

  1. The French verb “entreprendre” means:
  2. to work.
  3. to run.
  4. to walk.

*d. to undertake.

Answer Location: Defining and Understanding Social Entrepreneurship

Learning Objective: 16-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. Dees and Anderson recommend that the social enterprise school and the social innovation school be blended into a school referred to as:

*a. enterprising social innovation.

  1. impact socialization.
  2. creative and innovative enterprises.
  3. economic and social entrepreneurship.

Answer Location: Social Innovation School

Learning Objective: 16-1

Cognitive Domain: Knowledge

Question Type: MC

 

  1. The theories of social entrepreneurship are fairly analogous to the theories of leadership.

*a. True

  1. False

Answer Location: Theories of Social Entrepreneurship

Learning Objective: 16-3

Cognitive Domain: Knowledge

Question Type: TF

 

  1. One of the common characteristics of a social entrepreneur is that they have never experienced trauma.
  2. True

*b. False

Answer Location: Theories of Social Entrepreneurship

Learning Objective: 16-3

Cognitive Domain: Knowledge

Question Type: TF

 

  1. Social entrepreneurs have a high risk-aversion and a low tolerance for ambiguity.
  2. True

*b. False

Answer Location: Theories of Social Entrepreneurship

Learning Objective: 16-3

Cognitive Domain: Knowledge

Question Type: TF

 

  1. A social entrepreneur often exhibits a heightened sense of accountability to the constituencies served and for the outcomes created.

*a. True

  1. False

Answer Location: Theories of Social Entrepreneurship

Learning Objective: 16-3

Cognitive Domain: Knowledge

Question Type: TF

 

  1. Social entrepreneurship strategies are not disruptive forces.
  2. True

*b. False

Answer Location: Chapter Summary

Learning Objective: 16-1

Cognitive Domain: Knowledge

Question Type: TF

 

  1. Social entrepreneurship is a subject of worldwide interest to philanthropists and nonprofit leaders.

*a. True

  1. False

Answer Location: The Future of Social Entrepreneurship

Learning Objective: 16-2

Cognitive Domain: Knowledge

Question Type: TF

 

  1. Bill Drayton was the founder of the Grameen Bank.
  2. True

*b. False

Answer Location: History of Social Entrepreneurship as a Field

Learning Objective: 16-1

Cognitive Domain: Knowledge

Question Type: TF

 

  1. Habitat for Humanity is an example of a high-impact nonprofit.

*a. True

  1. False

Answer Location: Building High-Impact Nonprofits

Learning Objective: 16-4

Cognitive Domain: Knowledge

Question Type: TF

 

  1. Ashoka was founded to identify the most promising social entrepreneurs in the world and to raise funds to support their efforts.

*a. True

  1. False

Answer Location: History of Social Entrepreneurship as a Field

Learning Objective: 16-2

Cognitive Domain: Knowledge

Question Type: TF

 

  1. Yunus characterizes social businesses as those that have owners that are not poor.
  2. True

*b. False

Answer Location: Learning/Education

Learning Objective: 16-1

Cognitive Domain: Knowledge

Question Type: TF

 

  1. Explain the types of demographic characteristics common among entrepreneurs.

Ans: Varies

Answer Location: Theories of Social Entrepreneurship

Learning Objective: 16-3

Cognitive Domain: Analysis

Question Type: ESS

 

  1. Identify the psychological characteristics entrepreneurs commonly exhibit.

Ans: Varies

Answer Location: Theories of Social Entrepreneurship

Learning Objective: 16-3

Cognitive Domain: Analysis

Question Type: ESS

 

  1. Identify behaviors, according to Dees and colleagues, that entrepreneurs engage in?

Ans: Varies

Answer Location: Theories of Social Entrepreneurship

Learning Objective: 16-3

Cognitive Domain: Analysis

Question Type: ESS

 

  1. Explain Wei-Skillern, Augstin, Leonard, and Stevenson’s model of entrepreneurship.

Ans: Varies

Answer Location: Theories of Social Entrepreneurship

Learning Objective: 16-3

Cognitive Domain: Analysis

Question Type: ESS

 

  1. Identify what happens in the “perfect storm” for entrepreneurship, as identified by Brooks.

Ans: Varies

Answer Location: Theories of Social Entrepreneurship

Learning Objective: 16-3

Cognitive Domain: Analysis

Question Type: ESS

 

  1. Examine Ashoka’s six categories of Fellows and provide an example of each.

Ans: Varies

Answer Location: Social Entrepreneurship Across Fields and Around the World

Learning Objective: 16-2

Cognitive Domain: Analysis

Question Type: ESS

 

  1. Explain the work of the Awaaz Foundation.

Ans: Varies

Answer Location: Social Entrepreneurship Across Fields and Around the World

Learning Objective: 16-4

Cognitive Domain: Analysis

Question Type: ESS

 

  1. Explain how Ashoka Fellows are selected.

Ans: Varies

Answer Location: Social Entrepreneurship Across Fields and Around the World

Learning Objective: 16-4

Cognitive Domain: Analysis

Question Type: ESS

 

  1. Explain Mohammad Alhabsyi’s contribution to social entrepreneurship.

Ans: Varies

Answer Location: Social Entrepreneurship Across Fields and Around the World

Learning Objective: 16-4

Cognitive Domain: Analysis

Question Type: ESS

 

  1. Explore the human rights movement within Costa Rica as it relates to social entrepreneurship.

Ans. Varies

Answer Location: Social Entrepreneurship Across Fields and Around the World

Learning Objective: 16-4

Cognitive Domain: Analysis

Question Type: ESS

 

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