Deck 14: Social Enterprise and Earned Income

Question 1

According to Wei-Skillern, a small level of earned income is considered as ______.

A) integral
B) sustaining
C) disposable
D) supplementary

Answer 1

C

Question 2

Careful business plans include a/an ______ analysis projecting if assumptions will be wrong by some percentage.

A) market
B) earnings
C) sensitivity
D) feasibility

Answer 2

C

Question 3

In a ______ relationship, a for-profit company pays to have its name placed on a nonprofit's products.

A) sponsorship
B) joint venture
C) licensing agreement
D) corporate agreement

Answer 3

A

Question 4

A nonprofit organization seeking a business sponsor needs to consider the company's ______.

A) interests and goals
B) financial portfolio
C) employee benefits package
D) popularity among the staff and volunteers

Question 5

The term "social enterprise" can be used to describe both organizations and ______.

A) goals
B) values
C) activities
D) movements

Question 6

______ supported the renovation of the Statue of Liberty by contributing a penny to the campaign each time a consumer used the company's credit card.

A) Visa
B) Discover
C) Mastercard
D) American Express

Question 7

A nonprofit organization considering selling a product is evaluating the competitive marketplace. This action is an example of exploring the product's ______ environment.

A) joint
B) internal
C) external
D) feasibility

Question 8

In a ______ relationship, nonprofits provide services for business corporations that need to achieve social benefits that are not within their budgets.

A) enterprise
B) operational
C) joint venture
D) social enterprise

Question 9

How would Wei-Skillern categorize mission-related earned income that a nonprofit organization is very dependent on?

A) integral
B) disposable
C) sustaining
D) supplementary

Question 10

In what type of partnership does a for-profit company contribute a fixed contribution to a nonprofit organization in connection with a short-term promotion?

A) joint venture
B) cause marketing
C) corporate partnership
D) promotion-based venture

Question 11

What is a contract that permits a for-profit company to use the nonprofit's logo in return for a royalty called?

A) partnership
B) gift-in-kind
C) copyright agreement
D) licensing agreement

Question 12

What is the income a nonprofit organization receives from fees for service called?

A) earned
B) taxable
C) contributed
D) expendable

Question 13

A nonprofit board of directors is analyzing a feasibility study to determine if there is a community need for a new service. The board is looking at which part of the business plan?

A) description
B) market analysis
C) financial assumptions
D) uncertainties and risks

Question 14

What term describes for-profit companies that engage in cause marketing?

A) partners
B) promoters
C) creative marketers
D) commercial co-venturers

Question 15

Corporate sponsorships offer nonprofit organizations the benefits of added revenue and ______ through the company's promotion of the relationship.

A) increased respect
B) corporate freebies
C) increased visibility
D) improved recruiting

Question 16

According to Young, a business venture is worth pursuing if it ______.

A) supports the mission
B) offers a potential to break even
C) helps build a body of political support
D) just a few organizational members oppose the venture

Question 17

Which part of a business plan provides a succinct overview of the plan's major points?

A) executive summary
B) strategies for growth
C) financial assumptions
D) uncertainties and risks

Question 18

A nonprofit organization agreed to allow a for-profit corporation to use the nonprofit's logo on advertising to enhance the corporation's image. This agreement is an example of exchanging ______.

A) tactibles
B) inventories
C) intangibles
D) physical assets

Question 19

New initiatives undertaken by two entities that involve the creation of a new entity owned by both partners are called ______.

A) joint ventures
B) nonprofit enterprises
C) corporate partnerships
D) nonprofit business ventures

Question 20

A detailed, comprehensive document that encompasses an organization's strategic, marketing, business, and operational plans is called a ______.

A) market plan
B) business plan
C) feasibility analysis
D) sensitivity analysis

Question 21

The three sources of a balanced portfolio are earned income, philanthropy, and government sources.

Question 22

The executive director of the Global Good Fund argues that relying on earned income makes an organization ______.

A) prone to risk
B) more flexible
B) unattractive to corporate partners
C) open to opportunity

Question 23

Nonprofit business ventures may also be referred to as ______ by some people.

A) tax shelters
B) social enterprise
C) advocacy ventures
D) lobbying initiatives

Question 24

Ultimately, who is responsible for making the decision if a nonprofit organization should enter into a business partnership?

A) banks
B) board of directors
C) chief executive officer
D) Internal Revenue Service

Question 25

One step involved when creating a nonprofit business venture is to conduct a feasibility analysis.

Question 26

Economist Burton Weisbrod wrote in the Stanford Social Innovation Review that Congress should ______.

A) decrease tax incentives to be charitable
B) decrease tax incentives for philanthropy
C) discourage nonprofits from undertaking business ventures
D) discourage the for-profit sector from participating in nonprofit partnerships

Question 27

Examples of nonprofit business ventures are the retail stores operated by the Salvation Army.

Question 28

Three principal activities of nonprofit business ventures are services, manufacturing, and distribution.

Question 29

The Social Enterprise Alliance defines a social enterprise as a social opportunity.

Question 30

A business plan is a document used for internal and external purposes.

Question 31

Earning income from commercial ventures is easier than earning income from donations.

Question 32

What type of gift is a company's financial donation to a nonprofit organization without expectation of a benefit beyond that of social responsibility?

A) charity
B) gift-in-kind
C) philanthropic
D) earned income

Question 33

Wei-Skillern labels small amounts of earned income that are not directly related to a nonprofit's mission as ______.

A) integral
B) sustaining
C) disposable
D) supplemental

Question 34

One concern about earned-income strategies is they place limits on transparency due to contractual agreements.

Question 35

Earned income is derived from donor contributions.

Question 36

Financial donations to nonprofit organizations are referred to as ______ income.

A) contributed
B) banked
C) in-kind
D) investment

Question 37

Weisbrod calls the "growth of earned income" as the ______ of the nonprofit sector.

A) state transformation
B) corporate intervention
C) federal transformation
D) commercial transformation

Question 38

Nonprofits begin to identify business opportunities by surveying the business's ______.

A) risks
B) assets
C) members
D) opportunities

Question 39

Nonprofit organizations earn most of their revenue from earned income.

Question 40

Which type of relationship is not a nonprofit-corporate relationship?

A) lobbying
B) sponsorship
C) cause-marketing
D) licensing agreement

Question 41

Compare and contrast the terms "sponsorships" and "advertising."

Question 42

Identify and explain three fundamental questions nonprofit organizations need to answer before starting a business venture.

Question 43

Earned-income strategies may negatively impact the public's perception of a nonprofit organization.

Question 44

Explain why it is difficult to define the term "social enterprise."

Question 45

Identify and explain the risks and benefits of a joint venture for a nonprofit organization.

Question 46

Identify the three principal business activities nonprofit organizations engages in. Provide an example of each.

Question 47

Evaluate Sagawa and Segal's five obstacles to successful partnerships. Justify if you agree or disagree with Sagawa and Segal.

Question 48

Identify and explain the benefits to the nonprofit of a cause-marketing relationship.

Question 49

Investigate and justify why some licensing agreements can be controversial.

Question 50

Examine and explain Standard 19 of the Better Business Bureau Wise Giving Alliance Standards of Excellence.

Question 51

Identify and explain three concerns about earned-income strategies a nonprofit should explore.

Question 52

Explain why nonprofit organizations are becoming more interested in pursuing earned income through partnerships with businesses.