Study Guide for the 304 Midterm Exam

Study Guide for the 304 Midterm Exam

1. According to Peter Drucker, the task of the non-profit manager in regards to the organization’s mission statement is to

Choose one answer.

a. Turn the mission statement into specifics

b. Make sure the board approves it

c. Represents the ideas of the community

d. Is simple enough to fit on a t-shirt

2. According to Drucker as a non-profit organization adds on to what it does, meaning services and programs, it must also

Choose one answer.

a. Revise its mission statement every three to six months

b. Make sure it has a strong funding and revenue stream for the new programs

c. Abandon services and programs as well

d. Have the management capability for the new programs

3. What Peter Drucker consider to be the three “musts” of a successful mission (statement) of a non-profit?

Choose one answer.

a. Competence

b. Opportunities

c. Commitment

d. All of the above

4. According to Peter Drucker who was the most successful leader of the20th century?

Choose one answer.

a. Franklin Roosevelt

b. General Douglas MacArthur

c. Henry Ford

d. Winston Churchill

5. According to Drucker the most important task of the organization’s leader is to avoid crisis completely so as not to risk the organization in “battle.”

Answer: True False

6. Non-profits need what discipline more than even for profit businesses?

Choose one answer.

a. Regular revision of the mission statement

b. Organized abandonment of programs and services

c. Clear vision and goals

d. A strong revenue stream (funding) and management capability for new programs

7. Drucker believes non-profits need innovation as much as business or government.

Answer: True False

8. On the subject of innovation, where Peter Drucker say an executive of a non-profit should look for change that leads to innovation in an organization?

Choose one answer.

a. Unexpected success

b. Population changes

c. Changes in mindset and mentality

d. All of the above.

9. Which of the following IS NOT one of Drucker’s three characteristics to look for in picking a leader?

Choose one answer.

a. Strengths of the person

b. Weaknesses of the person

c. Matches the challenges of the institution

d. Has character or integrity

10. What does Peter Drucker say are the four basic competencies for a leader to work on?

Choose one answer.

a. Listening as a discipline, willingness to communicate, doesnt alibi self for poor work, and realizes how unimportant he/she is to the task

b. Vision casting, value creating, goal setting, execution of strategic plan

c. Mission statement creation, organized abandonment, innovation, and strengths

d. Self development, staff development, character, and does not alibi self or staff

11. According to Max DePree, what a leader needs to see him or herself in a position of indebtedness because leaders are given the gift of leadership by those who choose or agree to follow.

Answer: True False

12. Non-profits need four things, according to Drucker, what are they?

Choose one answer.

a. A plan, marketing, people and money

b. A vision, a plan, marketing and money

c. Money, facilities, marketing, people and vision

d. A cause, leadership, people, and money

13. Drucker states “A business earns its money on its own.” The money of the non-profit is owned or controlled by what group or groups to achieve results?

Choose one answer.

a. Reviewers and auditors under the oversight of the Attorney General for each state

b. It can vary according to each nonprofits by-laws

c. Funds are held in trust for donors and the board is the guardian for results

d. Generally by the board and in a FDIC insured bank or similar financial institution with good interest rates

14. Drucker gives a 5 step process for improving what a non-profit already does well. The first is "the goal must be defined well. " What are the other four steps?

Choose one answer.

a. Marketing to target groups, lots of communication, required resources and determining when we need to see results

b. Marketing to target groups, lots of money, required staff and determining when we need to see results

c. Marketing to large donors, lots of communication, required facilities and determining when we need to see results

d. Marketing to target groups, the right leaders, required resources and determining when we need to see results

15. According to Drucker, what is the best rule for improvement strategies?

Choose one answer.

a. Put your efforts in your successes

b. Review your strategies and abandon the ones failing

c. Access the cost effectiveness of each strategy and allocate resources to those with the lowest cost for service

d. All of the above

16. The two places executives of innovative organizations look and in this order are first out the window for change and then inside the organization for unexpected success.

Answer: True False

17. According to Drucker some common mistakes in doing anything new are :

Choose one answer.

a. one do not go into full scale operation without piloting,

b. beware of righteous arrogance of not adapting idea to reality

c. patch up the old rather than go all-out for the new

d. All of the Above

18. According to Philip Kotler sales starts with a set of products to push.

Answer: True False

19. According to Philip Kotler marketing starts with the consumers and customers, groups you want to serve well

Answer: True False

20. Kotler sees most organizations clear on what needs they would like to serve, but what are they unclear on?

Choose one answer.

a. What programs will have the widest appeal to donors

b. The goals in most capital campaigns

c. The difference between marketing and sales

d. The perspective of the customer towards what are their needs

21. Kotler calls marketing an STP approach, what does STP mean?

Choose one answer.

a. S-segmenting, T-targeting, P-positioning

b. S-segmenting, T-transitioning, P-positioning

c. S-servicing, T-targeting, P-positioning

d. S-segmenting, T-targeting, P-perfecting plan

22. According to Dudley Hafner there is really only a slight difference between fund raising and fund development, that only fundraising professionals understand.

Answer: True False

23. What does Dudley Hafner state as the two factors crucial to fund development?

Choose one answer.

a. Good acquisition of donors and recording their name for later retrieval

b. The proper materials for the ask at the right time

c. The care, treatment, cultivation of the donor and asking for a gift in relationship to the donors ability to give

d. Asking for a larger gift than expected (it flatters the donor) then an immediate thank you after whatever gift is given to show appreciation

24. What is a “major disappointment” Hafner has with non-profit organizations?

Choose one answer.

a. After considerable investment in acquisition, the donor information is placed in files in such a way the donor cannot continue to be cultivated

b. After considerable investment in acquisition, the donor development staff ask too often for future gifts

c. Not enough acquisition is done so you have few new donors and that information is placed in files in such a way they cannot continue to be cultivated

d. After considerable investment in acquisition, the thank you letter does not go out in 72 hours

25. Strategy is what Drucker says converts a non-profit’s mission and objectives into performance.

Answer: True False