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The financial health of non-profit institutions such as
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17 Aug 2006, 14:27
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The financial health of non-profit institutions such
as public television depends on large government
grants. Such grants allow funds to be concentrated
so that real benefit can be obtained. Otherwise
money will be diffused and such institutions will
cease to exist.
Which of the following, if true, most seriously
weakens the argument made above that government
grants are necessary for the survival of non-profit
institutions?
(A) Government grants for non-profit institutions
have declined in recent years.
(B) Donations by individuals, added together, are a
major source of investment funds.
(C) Money spent on non-profit institutions is
ultimately returned to the public.
(D) Fund raising efforts are an important source of
revenue for non-profit institutions.
(E) The absence of government regulation
encourages individuals to donate money.
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Re: The financial health of non-profit institutions such as
[#permalink]
17 Aug 2006, 22:13
karlfurt wrote:
The financial health of non-profit institutions such as public television depends on large government grants. Such grants allow funds to be concentrated so that real benefit can be obtained. Otherwise money will be diffused and such institutions will cease to exist. Which of the following, if true, most seriously weakens the argument made above that government grants are necessary for the survival of non-profit institutions? (A) Government grants for non-profit institutions have declined in recent years. --> out of scope, so what? (B) Donations by individuals, added together, are a major source of investment funds. ---> investment funds for what? (C) Money spent on non-profit institutions is ultimately returned to the public. ---> "180" actually supports the premise. It`s the people who benefit from the free services made available by such NPOs. (D) Fund raising efforts are an important source of revenue for non-profit institutions. ---> "important" is very vague. Are we talking about 1% or 75%? (E) The absence of government regulation encourages individuals to donate money. ---> Correct! This implies that the private donations are sufficient enough to sustain public broadcasting TV, etc.
Re: The financial health of non-profit institutions such as
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17 Aug 2006, 23:42
Will go with E.
C looks good as it directly counters what is asked in the question. But IMO C is not addressing the issue.
Take a look at this line.
Such grants allow funds to be concentrated so that real benefit can be obtained. Otherwise money will be diffused and such institutions will cease to exist.
The job of non-profit institutions is to help the general public. The author claims that grants to non-profit organizations by the goverment helps to concentrate the funds and utilise it better.
But if individuals donate money when nothing is available from goverment, non-profit institutions can still function.
Re: The financial health of non-profit institutions such as
[#permalink]
22 Aug 2006, 04:38
I'm sorry for the late OA. I was absent and forgot this thread.
It might disapoint you as it did for me, but OA is B.
I don't have the OE here but I wasn 't not satisfied with it.
B speaks about investement funds. Funds for what?????
I chose E too.
Schools:Completed at SAID BUSINESS SCHOOL, OXFORD - Class of 2008
Re: The financial health of non-profit institutions such as
[#permalink]
22 Aug 2006, 07:10
karlfurt wrote:
I'm sorry for the late OA. I was absent and forgot this thread. It might disapoint you as it did for me, but OA is B. I don't have the OE here but I wasn 't not satisfied with it. B speaks about investement funds. Funds for what????? I chose E too.
I can't believe this. What is the source???? _________________
Re: The financial health of non-profit institutions such as
[#permalink]
22 Aug 2006, 11:44
The evidence is that "Such grants allow funds to be concentrated so that real benefit can be obtained. Otherwise money will be diffused and such institutions will
cease to exist."
B goes to the heart of the passage. "Donations by individuals, added together, are a major source of investment funds."
Re: The financial health of non-profit institutions such as
[#permalink]
22 Aug 2006, 12:22
govinam wrote:
The evidence is that "Such grants allow funds to be concentrated so that real benefit can be obtained. Otherwise money will be diffused and such institutions will cease to exist."
B goes to the heart of the passage. "Donations by individuals, added together, are a major source of investment funds."
that was my reasoning anyway
nice explanation!
though it doesn't refer to the destination of the funds.
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gmatclubot
Re: The financial health of non-profit institutions such as [#permalink]