Question

Board members of a nonprofit organization are calculating the salary offer for a new ceo. the board wants to ensure the salary pays the new ceo fairly for the knowledge and skills he will provide the organization. the board members are practicing:

Answer 1

Answer:

Non profit distributing

Explanation:

Non profit distributing organization is an organization that reinvest profit made into the organization towards expansion and increased profit rather than being distributed to shareholders.

However , it is allowed to pay reasonable amount of salary to employees for services rendered as this treated as part of the cost of production towards profit making.

Answer 2

Answer:

nonprofit distributing

Explanation:

Based on the scenario being described within the question it can be said that the board members are practicing nonprofit distributing. This term refers to an organizational structure in which the profit the organization makes is reinvested in services to grow the business as opposed to being distributed to the shareholders. Which is what the company in this scenario is doing by using the money they have made in order to hire a new skillfull CEO.