Control systems in nonprofit organizations probably will never be as highly developed as in profit-seeking firms because in nonprofit organizations
A) there is more competitive pressure from other organizations to improve management control systems.
B) the role of budgeting is often more a matter of playing bargaining games with sources of funding to get the largest possible authorization than it is rigorous planning.
C) organizational goals and objectives are more clear.
D) measurements are less difficult to make.

Question

Quizplus · Accepted Answer

Nonprofit organizations often rely heavily on fundraising and grant funding, which can create a focus on maximizing funding rather than developing rigorous control systems. This can result in less developed budgeting and management control systems compared to profit-seeking firms.

Control Systems in Nonprofit Organizations Probably Will Never Be as Highly