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Which of the following statements regarding measurement of performance in not-forprofit organisations is/are true?
(1) Output does not usually have a market value, and it is therefore more difficult to
measure effectiveness.
(2) Control over the performance can only be satisfactorily achieved by assessments of
‘value for money’.
A (1) only
B (2) only
C Neither (1) nor (2)
D Both (1) and (2)I chose D, however, the correct answer is B. I thought output in NFPOs do not have market value as they are given away for free.
Looking forward to your response, Sir
Iniss.Option B is the correct answer.
Control over the performance in not-for-profit organisations can only be satisfactorily achieved by assessments of ‘value for money’.Output not having a market value does not necessarily make it more difficult to measure effectiveness in not-for-profit organisations.
Effectiveness can be measured by looking at various factors such as the number of people served, impact on the community, or the efficiency of operations. While output may not have a market value, it does not inherently make measuring effectiveness more difficult.
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