To Build a Financial Structure Capable of Sustaining an Organization

question 3

Multiple Choice

To build a financial structure capable of sustaining an organization and funding the group's activities, what do most interest groups primarily rely on?

• A)grants from charitable foundations
• B)research contracts and royalties from intellectual properties
• C)selling of ancillary services such as insurance or vacation tours
• D)membership dues and voluntary contributions

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Definitions:

Discount

A reduction from the usual cost of something, often applied to encourage sales or offered to certain groups.

Bonds Payable

Long-term liabilities represented by negotiable certificates, indicating a promise to pay a specified sum of money plus interest at defined intervals.

Straight-line

A method of calculating depreciation of an asset where the expense is evenly distributed over its useful life.

Effective-interest

A method of calculating the interest rate on a loan or financial product that takes into account compound interest and fees, providing a true annual rate.