SE MCQ

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What is the primary goal of social enterprises?

To innovate and experiment in the market

To maximize profits

To tackle social problems and challenges (correct)

To compete with commercial businesses

How do social enterprises differ from traditional businesses?

They are non-profit organizations

They operate only in the voluntary sector

They are small-scale businesses

They have a social mission as their core purpose (correct)

What happens to the profits made by social enterprises?

They are used to pay off debts

They are donated to charity

They are distributed to shareholders

They are reinvested into the business or local community (correct)

What is a characteristic of social enterprises?

They have a commercial activity Signup and view all the answers

What is the minimum percentage of income that social enterprises aim to derive from commercial activity?

50% Signup and view all the answers

What is a key feature of social enterprises' governance?

They have community accountability through a co-operative structure or management by voluntary trustees Signup and view all the answers

What drives the activities of social enterprises?

An explicit social aim Signup and view all the answers

What is the relationship between social enterprises and the voluntary sector?

They can draw upon best practice from each other Signup and view all the answers

What is a potential source of income for social enterprises besides investments?

Local government grants Signup and view all the answers

What is the primary goal of social enterprises in terms of scaling up?

To create employment opportunities Signup and view all the answers

What is a characteristic of entrepreneurial readiness in social enterprises?

Double aims of equal importance Signup and view all the answers

What should a social enterprise mission statement explain?

What the enterprise will do, how it is entrepreneurial, and why it is important Signup and view all the answers

What is a benefit of having a good mission statement?

It provides focus and attracts support Signup and view all the answers

What should a social enterprise mission statement specify?

What the enterprise will and will not do, how it creates and measures value, and how it innovates or adapts Signup and view all the answers

What is an improvement in the revised XYZ mission statement compared to the initial one?

It is more specific about the organization's intended actions Signup and view all the answers

What is a characteristic of mixed funding in social enterprises?

Open and responsible decision-making and governance Signup and view all the answers

What distinguishes a social enterprise from other types of businesses?

It reinvests profits into the business or local community. Signup and view all the answers

Which of the following is an unethical business practice?

Adjusting business expense accounts for personal profit Signup and view all the answers

According to the business model for Boaz and Ruth, who are considered strategic resources?

Founder's attributes and donations. Signup and view all the answers

Which value is NOT typically associated with co-operatives?

Competitiveness Signup and view all the answers

Which entity is NOT listed as a partner in the business model description for Boaz and Ruth?

International NGOs Signup and view all the answers

What component links the vulnerable population to job training in Boaz and Ruth's model?

Commercial enterprises Signup and view all the answers

What is an example of a WISE (Work Integration Social Enterprise)?

A recycling organization focused on employability training Signup and view all the answers

Which of the following is a demand side threat to a social enterprise?

Product finding no market. Signup and view all the answers

Which of the following is a traditional ethical value held by co-operative members?

Openness Signup and view all the answers

Which of these is not aligned with the ethical values of co-operative members?

Misleading for contracts Signup and view all the answers

What is a common reason for the failure of many social enterprises?

Persistent lack of income. Signup and view all the answers

What kind of social objectives are valued in a social enterprise?

Specific, measurable, and realistic goals. Signup and view all the answers

What is a key characteristic of a co-operative?

Equity Signup and view all the answers

What does a supply side threat entail for a social enterprise?

Too much capital needed or ongoing costs that are too high. Signup and view all the answers

What is a key aspect of social values in business?

Environmental sustainability Signup and view all the answers

What is an example of ethical behaviour in business?

Providing quality goods and services Signup and view all the answers

What is a key principle of empowerment in business?

Giving employees more autonomy Signup and view all the answers

What is a benefit of good employment practices?

Fair pay and job satisfaction Signup and view all the answers

What is an example of unethical behaviour in business?

Using insider knowledge for personal gain Signup and view all the answers

What is a key aspect of transparency and trust in business?

Openly communicating with stakeholders Signup and view all the answers

What is a benefit of co-operation between enterprises?

Increased collaboration and innovation Signup and view all the answers

What is a key aspect of equality in business?

Treating all stakeholders with dignity and respect Signup and view all the answers

What type of measures are used in the Ashoka metrics?

A mixture of binary and continuous measures Signup and view all the answers

What is benchmarking in the context of social enterprises?

Comparing performance to another organization in the field Signup and view all the answers

What is Social Return on Investment (SROI) attempting to quantify?

Both economic and social impacts of social enterprises Signup and view all the answers

What is enterprise value in the context of SROI?

Net revenues minus total expenses, measured in dollars Signup and view all the answers

What is social purpose value in the context of SROI?

Impact of the enterprise on people's lives Signup and view all the answers

What is blended value in the context of SROI?

Economic + socioeconomic value of the enterprise Signup and view all the answers

What is typically the case for social enterprises in terms of enterprise value?

It is typically negative Signup and view all the answers

What are private donations considered to have in terms of social purpose value?

Positive social purpose value Signup and view all the answers

What is a key characteristic of continuous measures?

They use numeric, quantitative data. Signup and view all the answers

Which component involves systematically studying the quality, success, or worthiness of an enterprise?

Evaluation Signup and view all the answers

What is measured using a binary approach?

Occurrence of an event Signup and view all the answers

Which aspect of social enterprises makes value measurement more difficult?

Maximizing social impact Signup and view all the answers

What type of measurement compares performance to a schedule or timeline in a plan?

Developmental Signup and view all the answers

Which component is defined as an organization’s ability to attain desirable outcomes?

Effectiveness Signup and view all the answers

What kind of scale could range from 'very effective' to 'very ineffective'?

Rating scale Signup and view all the answers

Which of the following is not a possible target for measurement in a social enterprise as per Figure 5.1?

Marketing Signup and view all the answers

What value is added to calculate the social purpose value?

Social cost savings Signup and view all the answers

How is the Blended index of return calculated?

Sum of Enterprise value and social purpose value divided by philanthropic investment Signup and view all the answers

Which measure might make social enterprises appear inefficient compared to commercial enterprises?

Net revenue/total assets Signup and view all the answers

What does the Enterprise index of return measure?

Enterprise value divided by philanthropic investment Signup and view all the answers

At what point in Figure 5.3 is mission adherence maximized?

R* Signup and view all the answers

What is included in the calculation of enterprise value?

Value of sales Signup and view all the answers

What represents a common tradeoff for social enterprise managers?

Choosing between delivering services and raising funds Signup and view all the answers

What is the optimum point of mission adherence referred to in Figure 5.3?

Mmax Signup and view all the answers

What can a social venture do after winning and wanting to move on?

Redefine to meet a new social mission Signup and view all the answers

What is likely to happen to many new social organizations within their first four years?

Facing high failure rates Signup and view all the answers

How should the failure of a social enterprise primarily be interpreted?

As a market mechanism at work Signup and view all the answers

Which type of organizations were noted as being particularly fragile in the 1990s?

Religious and arts organizations Signup and view all the answers

What opportunity arises from the failure of one social enterprise?

A chance for another organization to succeed Signup and view all the answers

What is NOT a potential outcome for social ventures after achieving their mission?

Expanding into international markets Signup and view all the answers

Which growth strategy involves finding new consumers for existing services?

Market driven growth Signup and view all the answers

What competitive force involves the threat of new entrants to a market?

Ease of entry Signup and view all the answers

In the context of social enterprises, what do socio-economic changes influence?

Ability to create social value Signup and view all the answers

Which example best represents product diversification?

College Summit advising colleges on how to reach low-income teens Signup and view all the answers

Which factor represents a parallel threat to social enterprises?

Substitutes for service Signup and view all the answers

What is essential for a merger proposal in a growth strategy?

Willingness to partner Signup and view all the answers

Which competitive force involves clients finding alternative ways to meet their needs?

Substitutes Signup and view all the answers

What does product development in social enterprise growth involve?

New activities or programs Signup and view all the answers

What type of growth strategy involves market penetration?

Providing service to more clients in the same market Signup and view all the answers

What does competition with other groups serving the same clients represent in social enterprises?

Competitive pressure from rivals Signup and view all the answers

What is a key element in the intrapreneurial process?

Entrepreneurial personnel Signup and view all the answers

What characteristic of social entrepreneurship involves both degree and frequency?

Intensity Signup and view all the answers

Which practice within an organization helps to create an intrapreneurial environment?

Encouraging informal communications Signup and view all the answers

What is often necessary to support the implementation of ideas in an entrepreneurial process?

Resource allocation Signup and view all the answers