A Good Measure of Whether a Not-For-Profit Organization Is Operating

question 51

Multiple Choice

A good measure of whether a not-for-profit organization is operating its programs efficiently is:

• A) Fund-raising expenses as a percentage of public support.
• B) The ratio of program expenses to number of clients served.
• C) Total revenues divided by total expenses.
• D) Percentage of program expenses to total expenses.

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Definitions:

Economic Growth

An increase in the production of goods and services over a specific period, often measured by GDP.

Production

The process of creating goods and services through the combination of labor, materials, and capital.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a fixed amount of resources and technology.

Deep Depression

An extended period of significant decline in the economy, characterized by high unemployment, sharp decreases in output and trade, and widespread poverty.