Which of the Following Is a Probable Use a Donor

question 50

Multiple Choice

Which of the following is a probable use a donor would make of the external financial statements of a not-for-profit entity?

• A)To determine the proportion of entity resources directed to programs as opposed to fund-raising.
• B)To determine the creditworthiness of the entity for investment purposes.
• C)To determine the salaries paid to all employees of the entity.
• D)To determine the budget of the entity.

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Definitions:

Elastic Firm Demand

Describes a situation where the demand for a firm's products is highly sensitive to changes in price, indicating consumers are likely to change their purchasing behavior if the price changes.

Significant Barriers

Obstacles that significantly hinder entry into a market or industry, including legal restrictions, high start-up costs, and substantial economic and technological challenges.

Oligopolistic Firm

A company that operates in a market structure characterized by a small number of firms that have significant market control, leading to limited competition.

Pricing Decisions

The process of determining what price to charge for a product or service, considering costs, market demand, and competition.