Accounting For Governmental & Not-for-profit Entities Quiz

An internal service fund is a type of fund that allows a government entity to pool its resources and provide services to other departments or agencies within the same government. By consolidating resources, the government can achieve economies of scale and operate more efficiently. This can result in cost savings, improved service delivery, and better coordination among different departments. Therefore, the statement that one purpose of an internal service fund is to pool the government's resources for a more efficient operation is true.

Enterprise funds are a type of accounting fund that is used for activities that are similar to those of a business. These funds are typically used for revenue-generating activities that are intended to cover their own costs. On the other hand, internal service funds are used for activities that primarily serve other departments or agencies within the government. These funds are used to provide services such as information technology or fleet management to other government entities. Therefore, the statement that enterprise funds are used for "business-type" activities and internal service funds are used predominantly for "governmental-type" activities is true.

The key characteristics which impact on marketing include: the presence of multiple stakeholders, transparency in the organization's mission and finances, the presence of multiple objectives in business and social terms, a different orientation compared with commercial organizations and, finally, different customer perceptions.

Proprietary funds are the most like commercial business in the governmental environment. Consequently, net income is a measure of proper management and financial health.

The statement that is not correct is that the mission statement of not-for-profit organizations usually revolve around being the best in a particular sector. For commercial organizations, the mission statement usually focuses on being 'best in market' and consequently achieving high levels of profit. In the not-for-profit sector, mission statements focus on causes. The raison d'être of a not-for profit is often to solve a particular societal problem

Event marketing is not an example of not-for-profit marketing. We can classify four main types of not-for-profit organizations, including 1) charities, 2) the newly emerging social enterprise sector, 3) the public sector and 4) political parties and campaigning organizations.

Many do use an internal service fund for self-insurance, but there is no GASB or other authoritative requirement.

In the UK, the government considers a social enterprise to be one that: 'is a business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximize profit for shareholders and owners' (BIS, 2011: 2). Social enterprises blend social objectives with commercial reality. There is a drive to make a profit, but any surplus is reinvested into the enterprise and not redistributed as a reward to owners.