A Wealthy Individual, Wanting to Make a Large Donation, Is

question 16

Multiple Choice

A wealthy individual, wanting to make a large donation, is comparing two charities to determine which one spends a smaller portion of the funds they raise on administration.Which of the following would be one of their objectives of the charities' financial reporting?

• A)Performance evaluation
• B)Minimum compliance
• C)Income smoothing
• D)Management evaluation

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Definitions:

Hang-gliding

A recreational activity or sport where a person flies a light, non-motorized aircraft which is launched by leaping from a height.

Responsible

Being accountable or answerable for something within one’s power, control, or management.

Title Search

The process of examining public records to verify the legal ownership of property and determine if there are any claims or liens against it.

Standard of Care

The level of carefulness and caution expected from someone who has a responsibility to act carefully.