One of the Limitations of Financial Ratio Analysis for Not-For-Profit

question 6

True/False

One of the limitations of financial ratio analysis for not-for-profit organizations is that donors may incorrectly assume that there are federal or state laws that govern the percentage of annual revenues that a charity must spend on its programs.

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Definitions:

Stimulus Generalization

The tendency for the conditioned response to be evoked by stimuli that are similar to the stimulus that was conditioned originally.

Conditioned Stimulus

A stimulus that was neutral but, after being paired with an unconditioned stimulus, begins to provoke a conditioned response.

Temporal Contiguity

The occurrence of two events close together in time, which can lead to an association between them in learning.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without any learning needed.