1. BUSI 409 Midterm Exam
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BUSI 409 Midterm Exam
1) An operational plan describes the specific actions that must be taken to
accomplish each objective identified in the strategic plan.
2) With very few exceptions, individuals serving on a nonprofit's board do so in a
paid capacity.
3) It is incumbent upon the governing board to establish policies and priorities,
approve the procedures to accomplish them, and monitor and assess the
organization's success in achieving its mission.
4) Through an organizational analysis, the organization's leaders can identify
these external trends/issues that may have an impact on the organization.
5) Monitoring the financial condition of the organization is a responsibility that
neither can nor should be delegated.
6) Although the chief executive officer (CEO), the treasurer, and the finance
committee have the chief responsibility for developing and tracking the budget, it
is every board member's responsibility to understand the budget, the budgeting
and investment procedures, and the organization's financial history in terms of
reserves and restricted funds (if any).
7) Objectives and strategies form the heart of a marketing plan and make use of
all the items in the marketing.
8) The process of strategic planning-the development, implementation, and
assessment of a plan-is not a single, one-shot event, rather, it is an ongoing
continuous process, which must adapt to environmental changes, both external
and internal.
9) Nonprofit leaders who think and manage strategically can and should develop
mechanisms to continuously (not just during the strategic planning process)
monitor emerging trends, opportunities and threats to the organization.
10) Whereas goals - or purposes - identify general policy directions of an
organization, mission statements specify how these general policy directions will
be carried out.

2. 11) A sales analysis is a method of evaluation that will help determine whether
marketing objectives are being met, but it does not yield any information about
how much better you might be doing. A market share analysis will give you a
sense of the total possible universe and the portion that you "own".
12) An area of particular concern for many executives is the distinction between
the board's role as policymaker and the chief executive's role as administrator
and implementer.
13) Values and beliefs that recognize constituent needs and expectations can be
captured as principles that define the philosophical guidelines for the
organization's activities
14) A nonprofit organization is typically born out of a group's desire to solve a
problem, meet a need, help a profession to develop, or create new opportunities.
15) Goals should be separated from the mission statement so that they can be
used as tools to assess the success of the organization in fulfilling its mission.
16) Of major importance is that strategic objectives should not only respond to
the needs of constituents, but also be realistic with respect to the organization's
environment, both externally and internally, including the available human and
financial resources required to accomplish them.
17) A strategic plan broadly maps the activities the organization should pursue to
reach its desired goals; it is not a detailed chronology of action.
18) The operational plan, focuses on the what, whereas the strategic plan will
focus on the how.
19) Selling is offering something in exchange for money: "I have something that I
want you to buy." The emphasis is on the seller and the object being offered. An
executive with a marketing orientation might say, "you have a need that I
understand, and I am offering a product or service to meet that need."
20) Breaking down a large potential market into special interest groups is called
market segmentation, or targeting the market, and that is how marketing is done
today
21) Working from the strategic plan, nonprofit organizations then develop
coherent, focused, realistic operational plans, describing the specific actions that
must be taken to accomplish each objective identified in the strategic plan.
22) Some nonprofits find it helpful to develop both positive and negative
scenarios about the organization's distant future (15 to 20 years into the future).4
23) Only standing committees -- those that relate to the basic governance of the
organization - should be included in a nonprofit bylaws.

3. 24) An analysis of the internal environment means assessing the organization's
strengths and weaknesses in all aspects of the organization.
25) Most governing boards are elected -- many by the constituents at large,
some by the members of the governing board electing their own replacements.