Deck 3: Theories of the Nonprofit Sector and Nonprofit Organizations

Question 1

When individuals do not have complete information to judge the quality of the goods they seek to purchase, they are experiencing ______.

A) goal displacement
B) resource dependency
C) information asymmetry
D) consumer misunderstanding

Answer 1

C

Question 2

The ______ is the principal standard against which nonprofit performance should be measured.

A) charter
B) business plan
C) mission statement
D) core values statement

Answer 2

C

Question 3

Individuals who benefit without paying are called ______.

A) consumers
B) free riders
C) externalities
D) resource leeches

Answer 3

B

Question 4

Lohmann describes a third category of goods as ______ goods.

A) free
B) common
C) charitable
D) tax-exempt

Question 5

The concept that organizations become more like each other when facing similar environmental influences is called ______.

A) isomorphism
B) goal displacement
C) institutional theory
D) task environment theory

Question 6

______ theory explains the behavior of organizations in terms of their dependence on external constituencies.

A) Supply-side
B) Isomorphism
C) Market failure
D) Resource dependence

Question 7

A nonprofit organization functioning as a/an _____ system is entirely self-sufficient.

A) open
B) closed
C) hybrid
D) unilateral

Question 8

The type of market failure in which a breakdown occurs in the relationship between a buyer and a seller is called a/an ______ failure.

A) public
B) private
C) contract
D) common

Question 9

_______ cultures help organizations produce excellent results.

A) Strong
B) Flexible
C) Relaxed
D) Variable

Question 10

One way to reduce dependency and thus maintain more autonomy is to ______.

A) rewrite the mission statement
B) use a single source of revenue
C) diversify the sources of revenue
D) lobby for more government assistance

Question 11

Normative isomorphism arises when organizations are influenced by the same standards of ______.

A) achievement
B) bureaucracy
C) assimilation
D) professionalism

Question 12

A risk of resource dependency is actions taken by the nonprofit to alter its goals to satisfy the contributor of funds. This action is also called ______:

A) goal displacement
B) population ecology
C) information asymmetry
D) performance measurement

Question 13

A sociological approach for explaining the life and death of an organization is called ______.

A) necrosis
B) dissolution
C) isomorphism
D) population ecology

Question 14

______ isomorphism refers to the tendency of organizations to copy each other.

A) Mimetic
B) Coercive
C) Mocking
D) Institutional

Question 15

______ enables a nonprofit organization operating as an open system to adapt to changing circumstances.

A) Feedback
B) Bureaucracy
C) Academic research
D) Operational results

Question 16

Sociologists describe nonprofits as ______.

A) mediating structures
B) the voice of the people
C) the basis of a nation's economy
D) organizations that engage in rational acts

Question 17

Salamon identifies nonprofits as ______.

A) self-governing
B) citizen communities
C) private sector organizations
D) public sector organizations

Question 18

What theory attributes the existence of nonprofit organizations to the vision of the individuals who created them?

A) failure
B) altruism
C) supply-side
D) entrepreneurship

Question 19

Nonprofit organizations are driven by ______.

A) the need to maximize profit
B) achievement of their missions
C) the success of fund-raising campaigns
D) a need to meet the expectations of a majority

Question 20

According to Edgar Schein, logos, ceremonies, and symbols belong to what category of culture?

A) basic values
B) basic assumptions
C) voluntaristic values
D) artifacts and creations

Question 21

Mary is writing detailed organizational policies for a nonprofit organization. Mary is practicing ______.

A) bureaucracy
B) dependency
C) experimentation
D) closed systems theory

Question 22

Nonprofits may not receive any funding from city governments.

Question 23

Board members of a nonprofit organization are calculating the salary offer for a new chief executive officer (CEO). The board wants to ensure that the salary paid to the new CEO is fair for the knowledge and skills needed to perform the job well. The board members are practicing ______.

A) open compensation
B) closed competition
C) nonprofit distributing
D) noncompulsory distributions

Question 24

A majority of citizens in a community do not agree with a minority of citizens that the community needs a nonprofit organization to serve the needs of homeless citizens. This sentence is an example of ______.

A) an externality
B) market failure
C) government failure
D) demand heterogeneity

Question 25

The term "resource dependency" means nonprofits rely on external constituencies for revenue.

Question 26

Failure theories suggest governments should pay to meet the needs of large groups.

Question 27

Name and explain functions political scientists argue that nonprofits perform in relation to government.

Question 28

A nonprofit volunteer is buying groceries for a poor family at a commercial store. The volunteer is buying ______ goods.

A) public
B) private
C) external
D) common

Question 29

A nonprofit organization landscaped the grounds of a building it occupies. This beautification improved the property values of the residences located across the street. This is an example of a(an) _____ externality.

A) nominal
B) positive
C) augmented
D) complement

Question 30

The term "open systems" means organizations interact with their external environments.

Question 31

Excess revenues gained by a nonprofit are invested in stock markets.

Question 32

According to trust theory, leaders are trusted because they are believed to be driven by altruistic motivations.

Question 33

The chief executive officer (CEO) of a nonprofit organization is preparing a data information system to monitor if organizational programs are meeting the established goal. The CEO is controlling his organization's performance through the use of ______ measures.

A) input
B) impact
C) mimetic
D) outcome

Question 34

The Internal Revenue Service does not allow nonprofits to undertake experimentation with regard to the development of new programs.

Question 35

Select a nonprofit organization and analyze how the nonprofit acts as a gap filler.

Question 36

The term "organizational culture" in a nonprofit refers to unwritten rules regarding "how things are done."

Question 37

A nonprofit organization provides training sessions to encourage its volunteers to embrace the organization's vision, mission, and values. The nonprofit is applying ______ theory.

A) market
B) institutional
C) open systems
D) closed systems

Question 38

Final control of a nonprofit organization is held by the chief executive officer.

Question 39

______ scientists study organizations from a perspective of power relationships.

A) Political
B) Historical
C) Behavioral
D) Environmental

Question 40

Nonprofit organizations differ from government organizations in that they have more flexibility to respond to the needs of diverse groups.

Question 41

Compare market failure and contract failure.

Question 42

Sketch a simplistic model of a nonprofit organization operating as an open system. Label each part of the system.

Question 43

Apply an example for each of Schein's three categories of organizational culture to a nonprofit organization.

Question 44

Explain Howard Berman's perspective on the nonprofit sector. Provide an example.

Question 45

Discuss recent research findings regarding the ability of nonprofit organizations to adapt to manage resource dependency.

Question 46

Explain the three types of isomorphism defined by Powell and DiMaggio. Provide an example of a nonprofit organization that demonstrates each type.

Question 47

Analyze if religious worship is a private, public, or common good.

Question 48

Select and summarize three of the five common characteristics of nonprofit organizations.

Question 49

Identify and explain situations in which government failure can occur.