Why Might a Manager for a Not-For-Profit Organization Seem as Concerned

question 69

Multiple Choice

Why might a manager for a not-for-profit organization seem as concerned with her organization's financial well-being as a for-profit manager?

• A)Not-for-profit managers are evaluated on financial performance only.
• B)Not-for-profit managers try to give the illusion that they care about the "bottom line."
• C)Many not-for-profit organizations have tight budgets and must be very efficient.
• D)Not-for-profit organizations have an obligation to turn a profit.

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Definitions:

Net Present Value

The calculation used to determine the current worth of a future stream of cash flows, adjusted for the time value of money.

Depreciation Tax Shield

The reduction in income taxes that results from taking a deduction for depreciation on the company's tax return, effectively reducing taxable income.

Cash Outlays

Payments in cash for expenses or investments made by a business or individual.

Auto Leases

Contracts that allow a person to use a car for a set period of time in exchange for regular payments, without owning the vehicle.