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:

Minimal Government Intervention

Minimal government intervention refers to an economic policy or philosophy where the government has a very limited role in the economy, allowing the market to operate with minimal regulatory influence.

Market System

An economic system where decisions regarding investment, production, and distribution are guided by the price signals created by the forces of supply and demand.

Self-interest

Acting in a way that is most beneficial for oneself.

Private Property

The right of private persons and firms to obtain, own, control, employ, dispose of, and bequeath land, capital, and other property.