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

Chapter 6 – Ensuring Accountability and Measuring Performance

TEST BANK

1. Which government entity grants nonprofits their charters?


2. The federal government

*b. State governments

1. County governments
2. City governments

Answer Location: Mechanisms for Accountability

Learning Objective: 6-2

Cognitive Domain: Knowledge


Question Type: MC

2. Many nonprofits have voluntarily adopted provisions as a way to assure their donors that they
are operating with high integrity, transparency, and sound governance.
3. IRS
4. Pension Protection Act
5. NAFTA

*d. Sarbanes-Oxley

Answer Location: Requirements of Law

Learning Objective: 6-2

Cognitive Domain: Knowledge

Question Type: MC

3. Whose Standards for Excellence in nonprofit management has become a model for other similar
associations across the country?
4. Independent Sector
5. BoardSource

*c. The Maryland Association of Nonprofit Organizations

1. The Panel of the Nonprofit Sector

Answer Location: Self-Regulation: Standards and Accreditation

Learning Objective: 6-2

Cognitive Domain: Knowledge

Question Type: MC

4. This entity, formed in 2001, provides standards for nonprofits that are among the best known
and most widely cited in the news media.

*a. The Wise Giving Alliance

1. Independent Sector
2. The Finance Committee of the U.S. Senate
3. Charity Navigator

Answer Location: Transparency

Learning Objective: 6-2

Cognitive Domain: Knowledge

Question Type: MC

5. A method that many nonprofits use to determine whether specific programs are effective in
achieving their goals and objectives is called:
6. effectiveness evaluation.
7. inputs.
8. statistical benchmarking.

*d. program evaluation.

Answer Location: Measuring Performance

Learning Objective: 6-4

Cognitive Domain: Knowledge

Question Type: MC

6. Very high may suggest that an organization is inefficient, or even participating in unethical or
fraudulent behavior.
7. service fees
8. staff salaries

*c. fund-raising costs

1. standards

Answer Location: Financial Ratios

Learning Objective: 6-4

Cognitive Domain: Knowledge

Question Type: MC
7. Leading thought in the field of measuring performance of nonprofits appears to be moving away
from an emphasis on the organization’s:
8. ability to accomplish its stated mission.
9. participation in accreditation programs.
10. ability to compete in the nonprofit sector.

*d. financial ratios.

Answer Location: Financial Ratios

Learning Objective: 6-4

Cognitive Domain: Knowledge

Question Type: MC

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

*a. Benchmarking

1. Performance evaluations
2. Accreditation
3. Cost-benefit analysis

Answer Location: Benchmarking

Learning Objective: 6-4

Cognitive Domain: Knowledge

Question Type: MC

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

*b. Statistical benchmarking

1. Common indicators
2. Corporate benchmarking
Answer Location: Benchmarking

Learning Objective: 6-4

Cognitive Domain: Comprehension

Question Type: MC

10. Which assessment tool is meant to determine an organization’s success in accomplishing its
mission, or program effectiveness?
11. Cost-benefit analysis
12. Financial ratio approach

*c. Outcomes approach

1. Peer analysis

Answer Location: Outcomes

Learning Objective: 6-4

Cognitive Domain: Comprehension

Question Type: MC

11. A theoretical explanation of the links all the way through a process is called a(n):
12. status update.
13. activity-based profitability model.
14. balanced scorecard.

*d. logic model.

Answer Location: Outcomes

Learning Objective: 6-4

Cognitive Domain: Knowledge

Question Type: MC
12. This concept was developed as a way for businesses to obtain a balanced perspective on
performance by combining financial data with other considerations.
13. Financial ratios

*b. Balanced scorecard

1. Common indicators
2. Cost-benefit analysis

Answer Location: Balanced Scorecard

Learning Objective: 6-4

Cognitive Domain: Knowledge

Question Type: MC

13. A variation of the balanced scorecard designed specifically for nonprofits, which asks, “Does it
work?” and “Is the organization well run?” is a(n):

*a. dashboard.

1. e-Postcard.
2. effectiveness scorecard.
3. balance sheet.

Answer Location: Balanced Scorecard

Learning Objective: 6-4

Cognitive Domain: Knowledge

Question Type: MC

14. Meyer suggests a simpler alternative to balanced scorecard would be:


15. submitting a Form 990.
16. benchmarking. c. identifying correlations between measures.
17. conducting an accountability analysis

Answer Location: Balanced Scorecard

Learning Objective: 6-4


Cognitive Domain: Knowledge

Question Type: MC

15. This concept adds social return to financial return in order to generate a single dollar amount
that could be used as an indicator of the organization’s performance and value.

*a. Social return on investment

1. Statistical benchmarking
2. Blended value
3. Corporate benchmarking

Answer Location: Social Return on Investment

Learning Objective: 6-4

Cognitive Domain: Comprehension

Question Type: MC

16. One disadvantage of SROI is that:


17. it does not measure the financial benefit of certain programs.
18. it cannot be used with intangible information.

*c. the analysis process is resource intensive.

1. it provides too much information to easily filter.

Answer Location: Social Return on Investment

Learning Objective: 6-4

Cognitive Domain: Knowledge

Question Type: MC

17. 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 through providing capital to organizations.
18. Simultaneous value
*b. Blended value

1. Performance value
2. Capital value

Answer Location: Blended Value

Learning Objective: 6-4

Cognitive Domain: Knowledge

Question Type: MC

18. According to blended value theorists, value should be thought about as having three
components: economic value, social value, and:
19. spiritual value.
20. educational value.
21. artistic value.

*d. environmental value.

Answer Location: Blended Value

Learning Objective: 6-4

Cognitive Domain: Knowledge

Question Type: MC

19. Nonprofit managers should be committed to performance measurement but:

*a. should not become overly focused on it to the detriment of their mission.

1. should be aware that they might be using the wrong measurement tool.
2. not if it takes too long to implement.
3. not to accountability measures.

Answer Location: Chapter Summary

Learning Objective: 6-5

Cognitive Domain: Knowledge


Question Type: MC

20. In 2004, the Urban Institute and the Center for What Works undertook a project to identify
a that nonprofits could use to inform practice and that would be practical to implement.
21. balanced scorecard analysis
22. three-dimensional chart

*c. common set of outcomes and outcomes indicators

1. youth-mentoring project

Answer Location: Common Indicators

Learning Objective: 6-4

Cognitive Domain: Knowledge

Question Type: MC

21. A nonprofit organization has placed an equal employment opportunity statement on all its
organization’s promotional materials. The organization is demonstrating:

*a. accountability.

1. performance.
2. effectiveness.
3. efficiency

Answer Location: Defining and Ensuring Accountability

Learning Objective: 6-1

Cognitive Domain: Comprehension

Question Type: MC

22. A nonprofit organization developed a dashboard that integrates internal and external variables
that influence program performance. The organization is using which measure of performance?
23. Inputs
24. Accountability
*c. Balanced Scorecard

1. Production

Answer Location: Chapter Summary

Learning Objective: 6-2

Cognitive Domain: Comprehension

Question Type: MC

23. The CEO of a nonprofit organization is conducting a study comparing the costs of conducting a
fundraising program to the amount of funds raised. The CEO is conducting a(an):
24. benchmarking program.
25. dashboard analysis.
26. a logic model.

*d. a cost-benefit analysis.

Answer Location: Balanced Scorecard

Learning Objective: 6-2

Cognitive Domain: Comprehension

Question Type: MC

24. A CEO of a nonprofit organization is electronically filing a notice to inform the Internal Revenue
Service the organization exists. The CEO is filing a(an):
25. Form 1024

*b. e-Postcard.

1. intent to incorporate.
2. common indicator.

Answer Location: Requirements of Law

Learning Objective: 6-2

Cognitive Domain: Comprehension


Question Type: MC

25. A board of directors has hired a consultant to evaluate their nonprofit organization’s legal
compliance. According to Patton’s dashboard, the nonprofit is assessing the organization’s:
26. assets.
27. results.

*c. risks.

1. change.

Answer Location: Balanced Scorecard

Learning Objective: 6-3

Cognitive Domain: Comprehension

Question Type: MC

26. __________ is what gets created when investors invest and organizations act to pursue their
mission.

*a. Value

1. Accountability
2. Goal displacement
3. Cost-benefit

Answer Location: Blended Value

Learning Objective: 6-3

Cognitive Domain: Comprehension

Question Type: MC

27. A private sector corporation is making a large donation to a nonprofit organization in order to
demonstrate community support. This is an example of:
28. a financial ratio.
29. a logic model.
*c. impact investing.

1. self-regulation.

Answer Location: Blended Value

Learning Objective: 6-4

Cognitive Domain: Comprehension

Question Type: MC

28. Another name for statistical benchmarking is:


29. a logic model.
30. a financial ratio.
31. a dashboard.

*d. a comparative performance measurement.

Answer Location: Benchmarking

Learning Objective: 6-4

Cognitive Domain: Comprehension

Question Type: MC

29. As a result of his participation in a nonprofit organization’s program to assist underserved youth,
Greg graduated from college. This is an example of a(an):
30. input.
31. activity.
32. common indicator

*d. outcome.

Answer Location: Outcomes

Learning Objective: 6-4

Cognitive Domain: Comprehension

Question Type: MC
30. An organization’s financial results are an example of:
31. legal risk.

*b. effectiveness.

1. accomplishment.
2. applying logic.

Answer Location: Chapter Summary

Learning Objective: 6-1

Cognitive Domain: Comprehension

Question Type: MC

31. Accountability means taking responsibility for your actions.

*a. True

1. False

Answer Location: Defining and Ensuring Accountability

Learning Objective: 6-1

Cognitive Domain: Knowledge

Question Type: TF

32. Requirements of the law include the Sarbanes-Oxley Act and the Pension Protection Act of 2006.

*a. True

1. False

Answer Location: Requirements of Law

Learning Objective: 6-2


Cognitive Domain: Knowledge

Question Type: TF

33. There are specific “best practices” standards that are required of all nonprofit organization in
the United States.
34. True

*b. False

Answer Location: Requirements of Law

Learning Objective: 6-2

Cognitive Domain: Knowledge

Question Type: TF

34. The Better Business Bureau has a mechanism that can prescribe how a nonprofit should conduct
business.

*a. True

1. False

Answer Location: Transparency

Learning Objective: 6-2

Cognitive Domain: Knowledge

Question Type: TF

35. A certificate or “seal of approval” by a charity watchdog tells potential donors that your
nonprofit is beyond reproach.
36. True

*b. False

Answer Location: Transparency


Learning Objective: 6-2

Cognitive Domain: Knowledge

Question Type: TF

36. How much a nonprofit spends on fundraising is a method of financial performance


measurement.

*a. True

1. False

Answer Location: Financial Ratios

Learning Objective: 6-4

Cognitive Domain: Knowledge

Question Type: TF

37. Benchmarking is a way for nonprofits to compare themselves among other similar organizations.

*a. True

1. False

Answer Location: Benchmarking

Learning Objective: 6-4

Cognitive Domain: Knowledge

Question Type: TF

38. The logic model is a method for measuring a nonprofit’s financial management capabilities.
39. True

*b. False
Answer Location: Outcomes

Learning Objective: 6-4

Cognitive Domain: Knowledge

Question Type: TF

39. SROI stands for “standard run on inventory.”


40. True

*b. False

Answer Location: Social Return on Investment

Learning Objective: 6-4

Cognitive Domain: Knowledge

Question Type: TF

40. Performance measurement is one of the ways a nonprofit can ensure it is achieving its mission.

*a. True

1. False

Answer Location: Performance Measurement: The Continuing Debate

Learning Objective: 6-4

Cognitive Domain: Knowledge

Question Type: TF

41. Name and explain the three principal mechanisms by which nonprofits are held accountable.

Ans: Varies

Answer Location: Mechanisms for Accountability


Learning Objective: 6-2

Cognitive Domain: Analysis

Question Type: ESS

42. Differentiate the different types of watchdog organizations that proactively examine nonprofit
organizations. Are their effects mostly positive or negative? Why?

Ans: Varies

Answer Location: Transparency

Learning Objective: 6-2Cognitive Domain: Analysis

Question Type: ESS

43. Determine the four categories into which the Principles for Good Governance and Ethical
Practice are divided.

Ans: Varies

Answer Location: Self-Regulation: Standards and Accreditation

Learning Objective: 6-2

Cognitive Domain: Application

Question Type: ESS

44. Examine and explain the benefits of participating in a best practice accreditation program.

Ans: Varies

Answer Location: Self-Regulation: Standards and Accreditation

Learning Objective: 6-2

Cognitive Domain: Analysis


Question Type: ESS

45. Compare and contrast the terms effectiveness and efficiency.

Ans: Varies

Answer Location: Chapter Summary

Learning Objective: 6-1

Cognitive Domain: Analysis

Question Type: ESS

46. Analyze the four key variables of the United Way outcomes model.

Ans: Varies

Answer Location: Outcomes

Learning Objective: 6-2

Cognitive Domain: Analysis

Question Type: ESS

47. Identify the four perspectives from which a balanced scorecard looks at an organization. Explain
pros and cons of using these four perspectives, as discussed in text.

Ans: Varies

Answer Location: Balanced Scorecard

Learning Objective: 6-2

Cognitive Domain: Analysis

Question Type: ESS


48. Identify the components of the McKinsey and Company assessment model for nonprofit
organizations and apply each of the components to a nonprofit organization that you are
familiar with.

Ans. Varies

Answer Location: Performance Measurement: The Continuing Debate

Learning Objective: 6-2

Cognitive Domain: Application

Question Type: ESS

49. Draw a basic logic model for a program that is offered by a nonprofit organization that you are
familiar with. Explain and label each part of your model.

Ans. Varies

Answer Location: Outcomes

Learning Objective: 6-6

Cognitive Domain: Application

Question Type: ESS

50. Explain the advantages and disadvantages of applying a financial ratio performance assessment
model.

Ans. Varies

Answer Location: Financial Ratios

Learning Objective: 6-5

Cognitive Domain: Analysis

Question Type: ESS


Chapter 7 – Strategic Planning and Strategic Management

TEST BANK

1. One of Kearns’s three approaches to formulating strategy for an organization maintains that
strategy evolves out of experience as the organization goes along, one decision at a time,
buffeted by bargaining and the push-and-pull of its constituencies.

*a. Incremental approach

1. Visioning approach
2. Analytical approach
3. Mission approach

Answer Location: Assessing the Situation

Learning Objective: 7-4

Cognitive Domain: Knowledge

Question Type: MC

2. Bryson defines this as “a disciplined effort to produce fundamental decisions and actions that
shape and guide what an organization… is, what it does, and why it exists.”
3. Operational planning
4. A consensus

*c. Strategic planning

1. A process

Answer Location: Strategic Planning and Strategic Management

Learning Objective: 7-1

Cognitive Domain: Knowledge

Question Type: MC
3. This method relates to the actions necessary to implement the strategic plan.
4. Strategic management

*b. Operational planning

1. Analytical planning
2. Long-range planning

Answer Location: Strategic Planning and Strategic Management

Learning Objective: 7-2

Cognitive Domain: Knowledge

Question Type: MC

4. are functions that the organization is required to perform, perhaps by its charter or law.
5. Missions
6. Visions
7. Values

*d. Mandates

Answer Location: Defining Mission, Values, and Vision

Learning Objective: 7-2

Cognitive Domain: Knowledge

Question Type: MC

5. The gradual evolution away from the organization’s purpose into ancillary activities that may
eventually result in an organization that is very unfocused is called:
6. mission devolution.

*b. mission creep.

1. spiraling failure.
2. program decentralization.

Answer Location: Defining Mission, Values, and Vision

Learning Objective: 7-2


Cognitive Domain: Knowledge

Question Type: MC

6. The vision statement is:


7. how the CEO envisions that his or her subordinates should act.
8. a written document that summarizes the organization’s financial portfolio.

*c. a description of an ideal future.

1. no longer considered necessary for strategic planning.

Answer Location: Defining Mission, Values, and Vision

Learning Objective: 7-2

Cognitive Domain: Knowledge

Question Type: MC

7. This identifies the characteristics, values, perceptions, expectations, and concerns of


stakeholders, including clients or customers, donors, and relevant government officials.
8. Portfolio analysis
9. Organizational strategy
10. Client-value planning

*d. Stakeholder analysis

Answer Location: Assessing the Situation

Learning Objective: 7-2

Cognitive Domain: Knowledge

Question Type: MC

8. define areas in which the organization needs to take action.

*a. Strategic issues or questions


1. Core competencies
2. Goal analysis
3. Organizational strategies

Answer Location: Identifying Strategic Issues

Learning Objective: 7-2

Cognitive Domain: Knowledge

Question Type: MC

9. These are directions that the organization will pursue with respect to the strategic issues that it
has identified.
10. Missions

*b. Goals

1. Evaluators
2. Strategies

Answer Location: Setting Goals

Learning Objective: 7-2

Cognitive Domain: Knowledge

Question Type: MC

10. Which of La Piana’s three levels of strategies appears at the top of the pyramid, and thus is
addressed first?

*a. Organizational strategy

1. Operational strategy
2. Programmatic strategy
3. Retrenchment strategy

Answer Location: Developing Strategies

Learning Objective: 7-4

Cognitive Domain: Knowledge


Question Type: MC

11. What are specific, quantified targets that represent steps toward accomplishing goals?
12. Values
13. Activities
14. Missions

*d. Objectives

Answer Location: Setting Objectives

Learning Objective: 7-2

Cognitive Domain: Knowledge

Question Type: MC

12. One of the benefits of strategic planning is that it helps build wide consensus and common
understanding about mission, vision, values, goals, and strategies. That benefit is sacrificed if:
13. it is poorly written.

*b. it remains a document available only to a select few in management.

1. only one person writes the actual document.


2. too many underlings have access to the document.

Answer Location: Writing the Strategic Plan

Learning Objective: 7-2

Cognitive Domain: Knowledge

Question Type: MC

13. The detailed work of producing an operational plan generally needs to be done primarily by:
14. board members.
15. representatives of other constituencies.
16. the CEO.

*d. the staff.


Answer Location: Developing an Operational Plan

Learning Objective: 7-2

Cognitive Domain: Knowledge

Question Type: MC

14. This is a technique used by business firms to determine it their various programs, products, and
services are in line with their strategies and goals.
15. Stakeholder analysis
16. Balanced scorecard

*c. Portfolio analysis

1. External vision statement

Answer Location: Developing Strategies

Learning Objective: 7-4

Cognitive Domain: Knowledge

Question Type: MC

15. The is used to evaluate company products or services based on the rate of growth in a particular
market and the share of the total market that their products and services represent.

*a. growth-share matrix

1. Kearns portfolio analysis matrix


2. Harvard policy model
3. MacMillan’s portfolio analysis matrix

Answer Location: Developing Strategies

Learning Objective: 7-4

Cognitive Domain: Knowledge

Question Type: MC
16. MacMillan’s portfolio analysis matrix provides a nonprofit with that may help clarify thinking
about each specific program and also about the relationship of its portfolio to its mission as an
organization.
17. an increase in revenue

*b. a way of recognizing patterns

1. more instances of alternative coverage


2. easier instructions for planning

Answer Location: Developing Strategies

Learning Objective: 7-4

Cognitive Domain: Knowledge

Question Type: MC

17. A criticism of strategic planning is that it does not always produce:


18. goals.
19. more revenue.

*c. strategies.

1. increased morale.

Answer Location: Benefits and Limitations of Strategic Planning

Learning Objective: 7-3

Cognitive Domain: Knowledge

Question Type: MC

18. Strategic planning may not make sense for an organization that:
19. is already doing well.
20. numbers fewer than 50 employees.
21. has poor leadership.

*d. is in a state of crisis.


Answer Location: Benefits and Limitations of Strategic Planning

Learning Objective: 7-3

Cognitive Domain: Knowledge

Question Type: MC

19. Strategic planning is not a substitute for:

*a. leadership.

1. consulting.
2. organizational meetings.
3. accountability.

Answer Location: Benefits and Limitations of Strategic Planning

Learning Objective: 7-3

Cognitive Domain: Knowledge

Question Type: MC

20. One of the many benefits of strategic planning is that it:


21. relieves the board members of their responsibilities.
22. is a panacea for all organizational problems.
23. reinforces the CEO’s power level.

*d. provides a basis for rational decision-making.

Answer Location: Benefits and limitations of Strategic Planning

Learning Objective: 7-3

Cognitive Domain: Knowledge

Question Type: MC
21. The board of directors of a nonprofit organization is planning to hold public listening sessions as
a means to identify and associate with others sharing similar interest. The board is attempting to
build capacity by:

*a. developing collaborations.

1. conducting an organizational assessment.


2. looking for ways to reorganize.
3. looking for new staff.

Answer Location: Capacity and Organizational Life Cycles

Learning Objective: 7-7

Cognitive Domain: Comprehension

Question Type: MC

22. Robert is unhappy that his grant application was rejected because it was written as a means for
covering his nonprofit organization’s operating costs. This is an example of grant makers:
23. focusing on sustainability.

*b. applying traditional grant application processes.

1. concerns about the organization’s mission.


2. concerns about the organization’s bookkeeping.

Answer Location: Building Organizational Capacity

Learning Objective: 7-6

Cognitive Domain: Comprehension

Question Type: MC

23. Staff and volunteers are what part of a nonprofit’s capacity?


24. Middle systems
25. Exterior systems

*c. Internal systems

1. External systems
Answer Location: Defining and Understanding Capacity

Learning Objective: 7-5

Cognitive Domain: Comprehension

Question Type: MC

24. Marty is holding a meeting with his staff and volunteers to solicit their ideas for organizational
improvement. Marty is applying which type of capacity as described by Letts?
25. Program capacity
26. Program expansion capacity

*c. Adaptive capacity

1. Internal capacity

Answer Location: Defining and Understanding Capacity

Learning Objective: 7-5

Cognitive Domain: Comprehension

Question Type: MC

25. Who created a numerical organizational capacity assessment tool?


26. Harvard University

*b. McKinsey & Company

1. Michael Worth
2. The U.S. Department of Commerce

Answer Location: Capacity Building in Action

Learning Objective: 7-5

Cognitive Domain: Comprehension

Question Type: MC
26. A nonprofit organization’s board of director’s is concerned about how the organization’s values
and beliefs affect capacity building. The board of director’s is applying the:
27. Boston Consulting Group Portfolio Analysis.
28. Harvard Policy Model

*c. McKinsey & Company’s Capacity Framework.

1. SWOT Analysis

Answer Location: A Model for Capacity Building

Learning Objective: 7-6

Cognitive Domain: Comprehension

Question Type: MC

27. The Rubicon Program expanded its already successful programs by:

*a. assessing its clients’ needs.

1. reorganizing its structure.


2. reducing the size of its paid staff.
3. reducing the size of its volunteer workforce.

Answer Location: Capacity and Organizational Life Cycles

Learning Objective: 7-7

Cognitive Domain: Knowledge

Question Type: MC

28. Betty’s Animal Farm has reached its maximum animal capacity and the board of director’s needs
to decide whether to expand building capacity or to close the nonprofit. Betty’s Animal Farm has
reached which stage of the nonprofit life cycle?
29. Imagine and inspire
30. Ground and grow
31. Produce and sustain

*d. Review and renew

Answer Location: Capacity and Organizational Life Cycles


Learning Objective: 7-7

Cognitive Domain: Knowledge

Question Type: MC

29. The Cat Shack nonprofit organization’s operating fund grew rapidly but has decreased greatly.
According to Brothers and Sherman The Cat Shack would be at what stage of the life cycle?

*a. High arc

1. Middle arc
2. Sustained arc
3. Low arc

Answer Location: Capacity and Organizational Life Cycles

Learning Objective: 7-7

Cognitive Domain: Comprehension

Question Type: MC

30. Older nonprofit organization are less likely than younger organizations to focus on:

*a. building relationships

1. applying organizational assessment tools.


2. reducing bureaucratic practices.
3. ignoring strategic plans.

Answer Location: Capacity and Organizational Life Cycles

Learning Objective: 7-7

Cognitive Domain: Comprehension

Question Type: MC
31, Strategic plans detail how the plan’s objectives will be achieved.

1. True

*b False

Answer Location: Setting Objectives

Learning Objective: 7-2

Cognitive Domain: Comprehension

Question Type: TF

32. Strategic planning is focused on the day-to-day operations of the nonprofit.


33. True

*b. False

Answer Location: Strategic Planning and Strategic Management

Learning Objective: 7-2

Cognitive Domain: Knowledge

Question Type: TF

33. Strategic management is an integrated approach that links strategy to implementation.

*a. True

1. False

Answer Location: Strategic Planning and Strategic Management

Learning Objective: 7-2

Cognitive Domain: Knowledge

Question Type: TF
34. The SWOT exercise is used to identify an organization’s strengths, weaknesses, opposition, and
trends.
35. True

*b. False

Answer Location: Assessing the Situation

Learning Objective: 7-2

Cognitive Domain: Knowledge

Question Type: TF

35. The mission statement explains the reason an organization exists.

*a. True

1. False

Answer Location: Defining Mission, Values, and Vision

Learning Objective: 7-2

Cognitive Domain: Knowledge

Question Type: TF

36. Values are the principles that an organization holds most important.

*a. True

1. False

Answer Location: Defining Mission, Values, and Vision

Learning Objective: 7-2

Cognitive Domain: Knowledge

Question Type: TF
37. Strategies are mainly defined as the directions that an organization will pursue with respect to
strategic issues.
38. True

*b. False

Answer Location: Setting Goals

Learning Objective: 7-2

Cognitive Domain: Knowledge

Question Type: TF

38. One of the characteristics of a good objective it that it is specific.

*a. True

1. False

Answer Location: Setting Objectives

Learning Objective: 7-2

Cognitive Domain: Knowledge

Question Type: TF

39. Once a strategic plan has been written, it should be used to stimulate wider discussion
throughout the organization and its constituencies.

*a. True

1. False

Answer Location: Writing the Strategic Plan

Learning Objective: 7-2

Cognitive Domain: Comprehension


Question Type: TF

40. CEOs may not allow volunteers and clients to read the strategic plan.
41. True

*b False

Answer Location: Writing the Strategic Plan

Learning Objective: 7-2

Cognitive Domain: Comprehension

Question Type: TF

41. A portfolio analysis is a technique used to determine if programs and services are in line with
strategies and goals.

*a. True

1. False

Answer Location: Developing Strategies

Learning Objective: 7-4

Cognitive Domain: Knowledge

Question Type: TF

42. An organization’s capacity elements may not both visible an invisible.


43. True

*b. False

Answer Location: Strategic Planning and Strategic Management

Lesson Objective: 7-1

Cognitive Domain: Knowledge


Question Type: TF

43. Differentiate strategic planning and long-range planning.

Ans: Varies

Answer Location: Strategic Planning and Strategic Management

Learning Objective: 7-1

Cognitive Domain: Analysis

Question Type: ESS

44. Show how strategic management links strategy with implementation.

Ans: Varies

Answer Location: Strategic Planning and Strategic Management

Learning Objective: 7-1

Cognitive Domain: Application

Question Type: ESS

45. Break down the steps of a basic, generic strategic planning model.

Ans: Varies

Answer Location: The Strategic Planning Process

Learning Objective: 7-2

Cognitive Domain: Analysis

Question Type: ESS


46. Explain the three basic elements that effective planning begins with?

Ans: Varies

Answer Location: Planning to Plan

Learning Objective: 7-2

Cognitive Domain: Analysis

Question Type: ESS

47. Analyze the mission statements given in Box 7.1. Which ones only give a statement of the
organization’s purpose? Which also give a brief statement about how they achieve this purpose?
Is one method more effective than the other? Explain.

Ans: Varies

Answer Location: Defining Mission, Values, and Vision

Learning Objective: 7-2

Cognitive Domain: Analysis

Question Type: ESS

48. Ascertain how core competencies are identified.

Ans: Varies

Answer Location: Assessing the Situation

Learning Objective: 7-2

Cognitive Domain: Application

Question Type: ESS

49. Examine the four types of strategic issues, as defined by Bryson. Give an example of each.
Ans: Varies

Answer Location: Identifying the Strategic Issues

Learning Objective: 7-2

Cognitive Domain: Analysis

Question Type: ESS

50. Select a nonprofit organization that you are familiar with. Prepare a PEST analysis of your
organization.

Ans: Varies

Answer Location: Assessing the Situation

Learning Objective: 7-2Cognitive Domain: Application

Question Type: ESS

51. Compare and contract capacity building activities applied by younger and older nonprofit
organizations.

Ans: Varies

Answer Location: Capacity and Organizational Life Cycles

Learning Objective: 7-7

Cognitive Domain: Analysis

Question Type: ESS

52. Examine the differences between internal and external capacity building environments.

Ans: Varies

Answer Location: Defining and Understanding Capacity


Learning Objective: 7-7

Cognitive Domain: Analysis

Question Type: ESS

53. Differentiate between a nonprofit organization’s internal and external elements.

Ans: Varies:

Answer Location: Defining and Understanding Capacity

Learning Objective: 7-5

Cognitive Domain: Analysis

Question Type ESS