Control systems in nonprofit organizations probably will never be as highly developed as in profit?seeking firms because in nonprofit organizations _____.
A)the activities of professional employees cannot be evaluated effectively
B)motivation and incentives of individuals may differ from those of for-profit organizations
C)organizational goals and objectives are clearer
D)measurements are less difficult to make

Question

Quizplus · Accepted Answer

Nonprofit organizations have different motivations and incentives than for-profit organizations. In profit-seeking firms, there is a clear measure of success in terms of making a profit, which allows for the development of more advanced control systems. Nonprofits, on the other hand, have more complex goals and objectives that cannot be as easily measured or quantified, and their employees may have different motivations and incentives than those in for-profit organizations. Therefore, control systems in nonprofit organizations are likely to be less developed.

Control Systems in Nonprofit Organizations Probably Will Never Be as Highly