84 Questions
Social enterprises are non-profit organizations.
False
Social enterprises have a clear social purpose that drives their activities.
True
Social enterprises are not dynamic or progressive businesses.
False
The profits of social enterprises are distributed to shareholders.
False
Social enterprises do not have community accountability.
False
Social enterprises are driven solely by profit motives.
False
Social enterprises do not innovate or experiment.
False
Social enterprises are not businesses that trade in the open market.
False
Social enterprises can only generate income from one source.
False
The main goal of a social enterprise is to create employment opportunities.
False
A social enterprise mission statement should be long and detailed.
False
A good mission statement helps to attract support for the social enterprise.
True
A social enterprise mission statement should only specify what the enterprise will do.
False
A good mission statement is not necessary for a social enterprise.
False
A social enterprise can only innovate or adapt in one way.
False
The revised XYZ mission statement is less specific than the initial one.
False
Social enterprises only reinvest their profits into their business.
False
A social enterprise's mission is to only make a profit.
False
A business model is a plan for how the mission will be achieved.
True
Boaz and Ruth's business model is only focused on serving its clients.
False
A social enterprise can fail due to a lack of income.
True
A supply side threat to a business model is when people don't want the product or service.
False
Social objectives are specific, measurable, and realistic.
True
Social enterprises are only focused on making a profit.
False
Miscalculating invoices and hoping customers won’t notice is an example of ethical business practice.
False
Co-operatives value equality.
True
Social enterprises are typically involved in recycling and employability training.
True
Co-operatives believe in the importance of honesty and social responsibility.
True
Social enterprises are primarily driven by profit motives.
False
A good mission statement is essential for a social enterprise.
True
Paying suppliers on time is an example of unethical behaviour.
False
Using insider knowledge for personal gain is an example of ethical behaviour.
False
Conserving natural resources and protecting the environment is an objective of social enterprises.
True
Treating members, staff, customers, and suppliers with courtesy, dignity, and respect is an example of unethical behaviour.
False
Providing quality goods and services is an objective of social enterprises.
True
Side-stepping rules and regulations to increase profits is an example of ethical behaviour.
False
Keeping promises is an example of unethical behaviour.
False
Honest accounting and tax calculation is an example of unethical behaviour.
False
Social Return on Investment (SROI) only measures economic impacts of social enterprises.
False
Enterprise value is measured in terms of lower welfare costs, higher tax revenues, or other social benefits.
False
RED F uses three components of SROI: Enterprise value, Social purpose value, and Blended value.
False
Blended value is the total value of the social enterprise, including both economic and socioeconomic values.
True
Private donations always show negative social purpose value.
False
The costs of obtaining grants and gifts are not considered in calculating social purpose value.
False
Social purpose value only measures the impact of the enterprise on people’s lives in economic terms.
False
Net revenues of social enterprises are typically positive.
False
A typical measure of ROI for social ventures is net revenue/total assets.
True
Social purpose value is calculated by subtracting fundraising and grant writing costs from grants and gifts.
False
The blended index of return is calculated by dividing enterprise value by philanthropic investment.
False
The enterprise index of return is calculated by dividing social purpose value by philanthropic investment.
False
Blended value combines enterprise value and social purpose value.
True
The social purpose index of return is calculated by dividing social purpose value by total assets.
False
The optimum amount of mission is where the last or marginal dollar spent raising revenue equals the amount of revenue produced.
True
Social enterprise managers should prioritize either delivering services or raising funds, but not both.
False
A social enterprise's ability to attain desirable outcomes is referred to as effectiveness.
True
Binary measures are based on a rating scale from 'very effective' to 'very ineffective'.
False
Measuring outcomes and impact involves using continuous, precise, and numeric measures.
True
Social enterprises have only one way to innovate or adapt.
False
Good impact measures lead to bad decisions about giving.
False
Outcomes refer to the results of an enterprise's activities.
True
Measuring social value is not important for social enterprises.
False
Developmental measures involve comparing performance to a schedule or timeline.
True
Attaining goals is the last stage of entrepreneurship that leads to the end of the social entrepreneurship process.
True
Social enterprises can distribute wealth to their shareholders.
False
Diversifying the support base is a strategy to reduce risk in social enterprises.
True
Social enterprises can only pursue one specific goal.
False
Gather and use data to look for signs of volatility is a strategy to manage and reduce risk in social enterprises.
True
The needs for social enterprise are likely to disappear in the face of success.
False
Growth is more a characteristic of the overall sector than the specific nonprofit.
False
First-mover advantage is critical when there is unmet need that an enterprise can address.
False
Boards are risk-takers during growth.
False
Intrapreneurship involves using formal meetings to encourage innovation.
False
The intensity of social entrepreneurship is characterized by degree and frequency.
True
Stable environments are preferred because they appear to have more risk.
False
Risk is highest at middle levels of frequency and degree of intrapreneurship.
False
Leadership risk is a type of risk factor for social entrepreneurs.
True
Social entrepreneurship is characterized by incremental change only.
False
Growth is only possible in high-growth sectors.
False
Some social enterprises can survive even after four years.
True
The failure of a social enterprise is primarily a moral lesson.
False
A social enterprise can fail due to a lack of income or other reasons.
True
All social enterprises innovate or experiment in the same way.
False
One organization's failure can be an opportunity for another social enterprise to succeed.
True
Social enterprises are never involved in recycling or employability training.
False
Learn about social enterprises that trade to tackle social problems, improving communities and people's life chances. They reinvest profits back into the business or local community.
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