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:

Production Relationships

The correlations between input factors and the resulting output in the production process of goods or services.

Production Possibilities Frontier

A graph showing all the possible highest production levels for two or more products, given certain inputs.

Trade

The act of buying, selling, or exchanging goods and services between people, firms, or countries.

Consumption Combination

The mix of goods and services that a consumer chooses to consume at a given time based on their preferences and budget.