Which of the Following Statements About Non-Profit Organizations and Capital

question 101

Multiple Choice

Which of the following statements about non-profit organizations and capital budgeting is true?

• A) Non-profit organizations discounted cash-flow analysis for short-term projects almost exclusively.
• B) Only profit organizations must have required rates of return for capital budgeting decisions.
• C) Because non-profit organizations are funded each year, they do not find capital budgeting to be worthwhile on a cost-benefit basis.
• D) Cost-benefit analysis is more important to non-profit organizations than capital budgeting analysis.
• E) In the non-profit sector, there is a tendency to cut capital-budget projects first when there is a strong push to balance a budget or cut a deficit.

---

Definitions:

National Health

A conceptual focus on the health and wellbeing of a nation's population, often relating to public health policies and systems.

Sole Authority

The exclusive power or right to decide, act, or control a particular situation or organization, without needing approval or consent from others.

Landrum-Griffin Act

A U.S. federal law enacted in 1959 to regulate labor unions' internal affairs and their officials' relationships with employers.

Labor Leaders

Individuals who advocate for the rights and interests of workers, often holding positions of authority within labor unions.