Why Do Nonprofit Organizations Stand to Gain from Using Information

question 51

Multiple Choice

Why do nonprofit organizations stand to gain from using information systems, just like business?

• A)Nonprofits, like businesses, spend huge amounts on IT maintenance.
• B)Nonprofits and businesses have the same set of primary activities and secondary activities.
• C)Like business, nonprofits are answerable to shareholders and stakeholders.
• D)The operational requirements to run nonprofits are similar to the operational requirements for businesses.

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Definitions:

Low-Quality

Products or services that fail to meet the expected standards of performance, durability, or reliability.

Adverse Selection

A market mechanism where buyers and sellers have different information, leading to the selection of poorer-quality goods or higher-risk individuals than average.

Risk-averse

A description of an investor or decision-maker who prioritizes minimizing risk over achieving potentially higher gains.

Certain Payoff

A guaranteed outcome or return from an investment, where the investor has absolute certainty over the amount to be received.