QUESTION 1

Which of these are challenges in putting together a performance budgeting approach? Select one: a. For some organizations, it is very difficult to measure outcomes, and/or link resources (inputs) and outcomes. b. Budgeting processes are highly political; elected officials may ignore information about results in making budgetary choices. c. It is impossible in most organizations to create a program budget that allocates administrative overhead between departments. d. A and B.

QUESTION 2

What are potential risks or disadvantages of maintaining a very large surplus in a non-profit organization? a. There is no risk; non-profit executives should build as large a reserve as possible;

b. Too large a reserve may put at risk mission achievement if the surplus results in insufficient expenditures necessary for attainment of a nonprofit mission; c. It is illegal for a non-profit to run a reserve and this can lead to loss of non-profit status.