Exam Questions Ch.16 Supporting Social Entrepreneurship Neck

Test Bank

Chapter 16: Supporting Social Entrepreneurship

Multiple Choice

1. Social entrepreneurs and traditional entrepreneurs are similar in that both ______.

a. measure success solely based on profit

b. Have the same mission and goals

c. measure success solely based on improving societal well-being

d. identify opportunities

Learning Objective: 16.1: Describe the role social entrepreneurship plays in society.

Cognitive Domain: Comprehension

Answer Location: 16.1. The Role of Social Entrepreneurship

Difficulty Level: Easy

AACSB Standard: Contexts of organizations in a global society

2. Social entrepreneurship is the process of ______.

a. forming strictly nonprofit ventures

b. sourcing innovative solutions for any type of problem

c. sourcing innovative solutions for social and environmental problems

d. rebranding a company’s image to appear more socially responsible

Learning Objective: 16.1: Describe the role social entrepreneurship plays in society.

Cognitive Domain: Knowledge

Answer Location: 16.1. The Role of Social Entrepreneurship

Difficulty Level: Easy

AACSB Standard: Social responsibility

3. Social entrepreneurship differs from other forms of entrepreneurship in that it gives higher priority to ______.

a. social value creation

b. Value capture

c. investors

d. assets

Learning Objective: 16.1: Describe the role social entrepreneurship plays in society.

Cognitive Domain: Knowledge

Answer Location: 16.1. The Role of Social Entrepreneurship

Difficulty Level: Hard

AACSB Standard: Social responsibility

4. A for-profit company builds trashcans that enable garbage to be compacted using solar energy. This company’s founder is an example of a/an ______.

a. angel investor

b. social entrepreneur

c. traditional entrepreneur

d. venture capitalist

Learning Objective: 16.1: Describe the role social entrepreneurship plays in society.

Cognitive Domain: Knowledge

Answer Location: 16.1. The Role of Social Entrepreneurship

Difficulty Level: Medium

AACSB Standard: Social responsibility

5. Organic Valley is an example of a/an ______, in which the company solves a social problem for farmers but still remains profitable.

a. NGO

b. social purpose venture

c. charity

d. LLC

Learning Objective: 16.3: Identify the different types of social entrepreneurship.

Cognitive Domain: Application

Answer Location: 16.3. Types of Social Entrepreneurship

Difficulty Level: Easy

AACSB Standard: Social responsibility

6. Wicked problems are defined as ______.

a. problems without conflicting values

b. large, complex social problems with limited information available and no clear solution

c. problems stemming from a toxic leader

d. problems with obvious solutions

Learning Objective: 16.2: Explain how social entrepreneurship can help resolve wicked problems around the world that are connected to the United Nations Sustainable Development Goals.

Cognitive Domain: Knowledge

Answer Location: 16.2. Social Entrepreneurship and Wicked Problems

Difficulty Level: Medium

AACSB Standard: Social responsibility

7. The combination of financial assistance such as grants with a high level of engagement by the funder is known as ______.

a. an earned-income activity

b. venture philanthropy funding

c. performance measurement

d. nonfinancial support

Learning Objective: 16.3: Identify the different types of social entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: Enterprising Nonprofits

Difficulty Level: Medium

AACSB Standard: Social responsibility

8. Which of the following is an example a wicked problem?

a. a startup that is running out of cash

b. a company founder who is determining his/her target market

c. a venture striving to reduce childhood mortality

d. a venture striving to diversify its offerings

Learning Objective: 16.2: Explain how social entrepreneurship can help resolve wicked problems around the world that are connected to the United Nations Sustainable Development Goals.

Cognitive Domain: Comprehension

Answer Location: 16.2. Social Entrepreneurship and Wicked Problems

Difficulty Level: Medium

AACSB Standard: Social responsibility

9. Overpopulation and the dramatic increase in life expectancy are examples of ______.

a. easily solved problems

b. wicked problems

c. issues only relevant to developing countries

d. problems with a clear solution

Learning Objective: 16.2: Explain how social entrepreneurship can help resolve wicked problems around the world that are connected to the United Nations Sustainable Development Goals.

Cognitive Domain: Comprehension

Answer Location: 16.2. Social Entrepreneurship and Wicked Problems

Difficulty Level: Medium

AACSB Standard: Social responsibility

10. The aim of a social purpose venture is ______.

a. to resolve a social problem with a nonprofit approach

b. strictly to make a profit

c. to both resolve a social problem and make a profit

d. to create awareness about a social issue

Learning Objective: 16.3: Identify the different types of social entrepreneurship.

Cognitive Domain: Comprehension

Answer Location: Social Purpose Ventures

Difficulty Level: Medium

AACSB Standard: Social responsibility

11. Social consequence entrepreneurship describes a ______.

a. for-profit venture whose primary market impact is financial

b. non-profit venture whose primary market impact is financial

c. non-profit venture whose primary market impact is social

d. for-profit venture whose primary market impact is social

Learning Objective: 16.3: Identify the different types of social entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: Social Consequence Entrepreneurship

Difficulty Level: Medium

AACSB Standard: Social responsibility

12. As described in the text, Sword & Plough hires army veterans to recycle surplus military materials such as parachutes, sleeping bags, and tents into fashionable bags and accessories. It donates 10% of its profits to veterans’ organizations. Sword & Plough is an example of ______.

a. a nonprofit venture

b. social consequence entrepreneurship

c. a social purpose venture

d. a traditional venture

Learning Objective: 16.3: Identify the different types of social entrepreneurship.

Cognitive Domain: Comprehension

Answer Location: Social Consequence Entrepreneurship

Difficulty Level: Medium

AACSB Standard: Social responsibility

13. In enterprising nonprofits, ______.

a. both the venture mission and the market impact are for social purposes

b. profits can be distributed to the owners

c. profits can be shared with stakeholders

d. a small percentage of profits can be challenged back into the organization

Learning Objective: 16.3: Identify the different types of social entrepreneurship.

Cognitive Domain: Comprehension

Answer Location: Enterprising Nonprofits

Difficulty Level: Medium

AACSB Standard: Social responsibility

14. Earned-income activities allow enterprising nonprofits to ______.

a. accept funding from the government

b. accept donations from other nonprofits

c. receive financial assistance such as grants, along with a high level of engagement by the funder

d. sell products or services that are used as a source of revenue generation

Learning Objective: 16.3: Identify the different types of social entrepreneurship.

Cognitive Domain: Comprehension

Answer Location: Enterprising Nonprofits

Difficulty Level: Medium

AACSB Standard: Social responsibility

15. Venture philanthropy funding ______.

a. combines financial assistance with a high level of engagement by the funder

b. offers financial assistance with no engagement by the funder

c. allows enterprising nonprofits to sell products or services to generate revenue

d. offers a high level of engagement from consultants with no financial support

Learning Objective: 16.3: Identify the different types of social entrepreneurship.

Cognitive Domain: Comprehension

Answer Location: Enterprising Nonprofits

Difficulty Level: Medium

AACSB Standard: Social responsibility

16. A hybrid model of social entrepreneurship describes a/an ______.

a. social venture that offers both products and services

b. organization with a purpose that primarily emphasizes social goals

c. organization with a purpose that equally emphasizes both economic and social goals

d. organization with a purpose that primarily emphasizes economic goals

Learning Objective: 16.3: Identify the different types of social entrepreneurship.

Cognitive Domain: Comprehension

Answer Location: Hybrid Models of Social Entrepreneurship

Difficulty Level: Medium

AACSB Standard: Social responsibility

17. Estimates are that the SVC (social venture capitalist) market could grow to ______ due to the rise of more socially conscious entrepreneurs looking for impact investment opportunities.

a. $1 billion

b. $500 billion

c. $1 trillion

d. $3 trillion

Learning Objective: 16.4: Explain how social entrepreneurs can use capital markets to fund their ventures.

Cognitive Domain: Knowledge

Answer Location: 16.4. Capital Markets for Social Entrepreneurs

Difficulty Level: Medium

AACSB Standard: Social responsibility

18. For-profits can seek investment from social venture capitalists (SVCs), also known as ______.

a. impact-investment funds

b. philanthropy funds

c. community funds

d. hybrid funds

Learning Objective: 16.4: Explain how social entrepreneurs can use capital markets to fund their ventures.

Cognitive Domain: Knowledge

Answer Location: 16.4. Capital Markets for Social Entrepreneurs

Difficulty Level: Easy

AACSB Standard: Social responsibility

19. A fund whose goal is to invest in economic development and job creation in impoverished areas is a/an ______.

a. impact-investment fund

b. community fund

c. microlending fund

d. inward-focused fund

Learning Objective: 16.4: Explain how social entrepreneurs can use capital markets to fund their ventures.

Cognitive Domain: Knowledge

Answer Location: 16.4. Capital Markets for Social Entrepreneurs

Difficulty Level: Easy

AACSB Standard: Social responsibility

20. Venture Philanthropy Partners focuses on helping youth and children from low-income families in the Washington, D.C., area. What type of fund is this?

a. impact-investment fund

b. community fund

c. microlending fund

d. inward-focused fund

Learning Objective: 16.4: Explain how social entrepreneurs can use capital markets to fund their ventures.

Cognitive Domain: Knowledge

Answer Location: 16.4. Capital Markets for Social Entrepreneurs

Difficulty Level: Medium

AACSB Standard: Social responsibility

21. ______ is a term used to describe financial services—including loans, insurance, and savings—to people considered ineligible to receive traditional banking services.

a. Hardship services

b. Philanthropic banking

c. Microfinance

d. Socially conscious lending

Learning Objective: 16.4: Explain how social entrepreneurs can use capital markets to fund their ventures.

Cognitive Domain: Knowledge

Answer Location: Microfinance as a Source of Social Financing

Difficulty Level: Medium

AACSB Standard: Social responsibility

22. In the context of social entrepreneurship, stakeholders are ______.

a. all the people or groups effected by or involved with the achievements of the social enterprise’s objectives

b. only the customers of the social enterprise

c. only the investors supporting the social enterprise

d. only the board members involved with the social enterprise

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Knowledge

Answer Location: 16.5. Social Entrepreneurs and Their Stakeholders

Difficulty Level: Medium

AACSB Standard: Social responsibility

23. According to the text, there are three primary attributes of stakeholders to consider ______.

a. personality, influence, loyalty

b. position, legitimacy, location

c. intelligence, wealth, power

d. power, legitimacy, urgency

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Comprehension

Answer Location: 16.5. Social Entrepreneurs and Their Stakeholders

Difficulty Level: Hard

AACSB Standard: Social responsibility

24. ______ behave in ways that are appropriate, proper, and desired in the context of the company, organization, or community.

a. Stakeholders in positions of power

b. Legitimate stakeholders

c. Urgent stakeholders

d. Dangerous stakeholders

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Comprehension

Answer Location: 16.5. Social Entrepreneurs and Their Stakeholders

Difficulty Level: Easy

AACSB Standard: Social responsibility

25. ______ in particular have the ability to either help or hinder your social objectives.

a. Stakeholders in positions of power

b. Discretionary stakeholders

c. Stakeholders who demand a great deal of attention

d. Dependent stakeholders

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Comprehension

Answer Location: 16.5. Social Entrepreneurs and Their Stakeholders

Difficulty Level: Medium

AACSB Standard: Social responsibility

26. ______ possess the urgency attribute but have no power or legitimacy.

a. Non-stakeholders

b. Dormant stakeholders

c. Demanding stakeholders

d. Discretionary stakeholders

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Comprehension

Answer Location: Demanding Stakeholders

Difficulty Level: Easy

AACSB Standard: Social responsibility

27. Stakeholders who hold power but do not tend to use that power unless they are given a reason to do so are considered ______.

a. dormant stakeholders

b. discretionary stakeholders

c. dependent stakeholders

d. definitive stakeholders

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Comprehension

Answer Location: Dormant Stakeholders

Difficulty Level: Easy

AACSB Standard: Social responsibility

28. Stakeholders who hold no power to influence and no urgent claims but who have legitimacy are considered ______.

a. dormant stakeholders

b. discretionary stakeholders

c. demanding stakeholders

d. definitive stakeholders

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Comprehension

Answer Location: Discretionary Stakeholders

Difficulty Level: Easy

AACSB Standard: Social responsibility

29. Stakeholders who possess the urgency attribute but have no power or legitimacy are considered ______.

a. dormant stakeholders

b. discretionary stakeholders

c. demanding stakeholders

d. definitive stakeholders

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Comprehension

Answer Location: Demanding Stakeholders

Difficulty Level: Easy

AACSB Standard: Social responsibility

30. Stakeholders who have both urgency and legitimacy but lack the power to influence are considered ______.

a. dormant stakeholders

b. discretionary stakeholders

c. dependent stakeholders

d. definitive stakeholders

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Comprehension

Answer Location: Dependent Stakeholders

Difficulty Level: Easy

AACSB Standard: Social responsibility

31. Stakeholders who have strong influence on an organization because they have both power and legitimacy are considered ______.

a. dominant stakeholders

b. discretionary stakeholders

c. dependent stakeholders

d. definitive stakeholders

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Comprehension

Answer Location: Dominant Stakeholders

Difficulty Level: Easy

AACSB Standard: Social responsibility

32. Stakeholders who possess both power and urgency but may use their power to coerce are considered ______.

a. dominant stakeholders

b. dangerous stakeholders

c. dependent stakeholders

d. definitive stakeholders

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Comprehension

Answer Location: Dangerous Stakeholders

Difficulty Level: Easy

AACSB Standard: Social responsibility

33. Stakeholders who possess power, legitimacy, and urgency are considered ______.

a. dormant stakeholders

b. discretionary stakeholders

c. dependent stakeholders

d. definitive stakeholders

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Comprehension

Answer Location: Definitive Stakeholders

Difficulty Level: Easy

AACSB Standard: Social responsibility

34. Donald likes to hold power but does not tend to use that power unless he is given a reason to do so. Donald is an example of a ______.

a. dormant stakeholder

b. discretionary stakeholder

c. demanding stakeholder

d. dominant stakeholder

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Application

Answer Location: Dormant Stakeholders

Difficulty Level: Medium

AACSB Standard: Application of knowledge

35. Judge Holder has no power to influence and has no urgent claims, but she does have legitimacy by using her influence. Judge Holder is an example of a ______.

a. dormant stakeholder

b. discretionary stakeholder

c. demanding stakeholder

d. dominant stakeholder

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Application

Answer Location: Discretionary Stakeholders

Difficulty Level: Medium

AACSB Standard: Application of knowledge

36. Michele has both power and legitimacy, giving her a great deal of influence in your organization. You would be wise to communicate with her regularly and respond to her queries efficiently and accurately to maintain a good relationship with her. Michele is an example of a ______.

a. dormant stakeholder

b. discretionary stakeholder

c. demanding stakeholder

d. dominant stakeholder

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Application

Answer Location: Dominant Stakeholders

Difficulty Level: Medium

AACSB Standard: Application of knowledge

37. Janell has a sense of urgency and is legitimate, but she does not have the power to influence. She is passionate, and her passion usually attracts dominant stakeholders. Janell is an example of a ______.

a. dependent stakeholder

b. dangerous stakeholder

c. definitive stakeholder

d. demanding stakeholder

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Application

Answer Location: Dependent Stakeholders

Difficulty Level: Medium

AACSB Standard: Application of knowledge

38. Robert has power and a strong sense of urgency but he has been known to use this power to coerce and manipulate. The power and urgency he exercises against your objectives have been a significant hindrance. Robert is an example of a ______.

a. dependent stakeholder

b. dangerous stakeholder

c. definitive stakeholder

d. dominant stakeholder

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Application

Answer Location: Dangerous Stakeholders

Difficulty Level: Medium

AACSB Standard: Application of knowledge

39. Alison possesses power, legitimacy, and urgency. She plays a significant role in your organization and must be given priority when it comes to handling her claims. Alison is an example of a ______.

a. dependent stakeholder

b. dangerous stakeholder

c. definitive stakeholder

d. dormant stakeholder

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Application

Answer Location: Definitive Stakeholders

Difficulty Level: Medium

AACSB Standard: Application of knowledge

40. Jing has no power or legitimacy; she is quite often the only dissenting voice in the room. Jing is an ideal example of a ______.

a. dormant stakeholder

b. discretionary stakeholder

c. demanding stakeholder

d. dominant stakeholder

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Application

Answer Location: Demanding Stakeholders

Difficulty Level: Medium

AACSB Standard: Application of knowledge

41. CSR stands for ______.

a. corporate social responsibility

b. consolidated social reporting

c. customer service relationships

d. customer social responsibility

Learning Objective: 16.6: Distinguish between corporate social responsibility and social entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: 16.6. Differences Between Social Entrepreneurship and Corporate Social Responsibility

Difficulty Level: Easy

AACSB Standard: Social responsibility

42. A corporation with profit goals can have a CSR strategy if it ______.

a. treats its customers responsibly

b. pursues social objectives in addition to pursing profit

c. maximizes its charitable contributions

d. reinvests all its profits into the company

Learning Objective: 16.6: Distinguish between corporate social responsibility and social entrepreneurship.

Cognitive Domain: Comprehension

Answer Location: 16.6. Differences Between Social Entrepreneurship and Corporate Social Responsibility

Difficulty Level: Medium

AACSB Standard: Social responsibility

43. The biggest difference between social entrepreneurship and corporate social responsibility is ______.

a. many social entrepreneurship models place equal emphasis on social and economic goals

b. corporate social responsibility places equal emphasis on social and economic goals

c. social entrepreneurship eschews economic goals

d. corporate social responsibility prioritizes social goals over economic goals

Learning Objective: 16.6: Distinguish between corporate social responsibility and social entrepreneurship.

Cognitive Domain: Comprehension

Answer Location: 16.6. Differences Between Social Entrepreneurship and Corporate Social Responsibility

Difficulty Level: Medium

AACSB Standard: Social responsibility

44. Today, the biggest global firms spend over ______ on CSR, and there are indications that they are reaping financial rewards from it.

a. $1 billion

b. $5 billion

c. $10 billion

d. $20 billion

Learning Objective: 16.6: Distinguish between corporate social responsibility and social entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: 16.6. Differences Between Social Entrepreneurship and Corporate Social Responsibility

Difficulty Level: Easy

AACSB Standard: Social responsibility

45. If a company has a record of CSR activities, what legal impact might it have?

a. If the firm is sued and prosecuted, it may receive more lenient penalties.

b. It is more likely to be sued, though less likely to be prosecuted.

c. It is not likely to be sued since it will be perceived as a “kind” company.

d. There is no legal impact resulting from CSR activities.

Learning Objective: 16.6: Distinguish between corporate social responsibility and social entrepreneurship.

Cognitive Domain: Comprehension

Answer Location: 16.6. Differences Between Social Entrepreneurship and Corporate Social Responsibility

Difficulty Level: Medium

AACSB Standard: Social responsibility

46. The hybrid model of social entrepreneurship places emphasis on ______.

a. making a profit

b. social goals

c. both making a profit and social goals

d. The hybrid model is highly irregular and has no standard emphasis.

Learning Objective: 16.6: Distinguish between corporate social responsibility and social entrepreneurship.

Cognitive Domain: Comprehension

Answer Location: 16.6. Differences Between Social Entrepreneurship and Corporate Social Responsibility

Difficulty Level: Medium

AACSB Standard: Social responsibility

47. The Audacious Project aims to bring together ______.

a. social entrepreneurs and philanthropists

b. dreamers and designers

c. investors and fund managers

d. college students and mentors

Learning Objective: 16.7: Assess the power of audacious goals within social entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: 16.7. Social Entrepreneurship and Audacious Ideas

Difficulty Level: Easy

AACSB Standard: Social responsibility

48. What is the ultimate goal of Audacious Project award winner The Bail Project?

a. to establish a microfinance bail fund in every state

b. to provide interest-free loans for bail in impoverished communities

c. to help end mass incarceration and combat racial disparity

d. to provide shelter to women and minorities who would otherwise face homelessness after they are bailed from jail

Learning Objective: 16.7: Assess the power of audacious goals within social entrepreneurship.

Cognitive Domain: Comprehension

Answer Location: The Bail Project

Difficulty Level: Medium

AACSB Standard: Social responsibility

49. For what project has the Environmental Defense Fund gained support from the Audacious Project?

a. expanding its media campaign to warn against the dangers of global warming

b. lobbying Congress to enact legislation that targets corporate methane producers

c. establishing a legal fund in order to better pursue legal action against corporate methane producers

d. building and launching a low-cost satellite to track and measure methane emissions

Learning Objective: 16.7: Assess the power of audacious goals within social entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: Environmental Defense Fund

Difficulty Level: Easy

AACSB Standard: Social responsibility

50. What population does Audacious Project award winner GirlTrek target in its health and well-being goals?

a. African American women

b. teenage girls

c. girls with physical disabilities

d. obese women

Learning Objective: 16.7: Assess the power of audacious goals within social entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: GirlTrek

Difficulty Level: Easy

AACSB Standard: Social responsibility

51. Audacious Project award winner Sightsavers is ______.

a. focused on providing eyeglasses to workers in Asian countries

b. devoted to eliminating trachoma from impoverished countries

c. dedicated to expanding existing medical NGOs to include ophthalmological wellness

d. working to partner large corporate eyeglasses manufacturers with local charities in the developing world

Learning Objective: 16.7: Assess the power of audacious goals within social entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: Sightsavers

Difficulty Level: Easy

AACSB Standard: Social responsibility

52. What population does Audacious Project award winner One Acre Fund assist?

a. those who live in U.S. “food deserts”

b. family-owned organic farmers throughout the world

c. urban U.S. gardeners

d. African smallholder farmers

Learning Objective: 16.7: Assess the power of audacious goals within social entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: One Acre Fund

Difficulty Level: Easy

AACSB Standard: Social responsibility

53. According to the 2018/2019 Global Entrepreneurship Monitor (GEM), the percentage of entrepreneurs in the United States has reached ______.

a. 3%

b. 8%

c. 12%

d. 15%

Learning Objective: 16.8: Illustrate the global diversity of entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: 16.8. Global Entrepreneurship

Difficulty Level: Easy

AACSB Standard: Group and individual behaviors

54. Individuals who believe they have the capacity and know-how to start a business without being burdened by the fear of failure are known as ______ in the GEM study.

a. nascent entrepreneurs

b. potential entrepreneurs

c. fearless entrepreneurs

d. new business owners

Learning Objective: 16.8: Illustrate the global diversity of entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: 16.8. Global Entrepreneurship

Difficulty Level: Easy

AACSB Standard: Group and individual behaviors

55. Raoul and his brother set up their mobile tool repair business two months ago. They have been successful but have not yet generated enough to pay themselves any wages. According to the GEM study, Raoul and his brother are ______.

a. potential entrepreneurs

b. nascent entrepreneurs

c. new business owners

d. established business owners

Learning Objective: 16.8: Illustrate the global diversity of entrepreneurship.

Cognitive Domain: Application

Answer Location: 16.8. Global Entrepreneurship

Difficulty Level: Medium

AACSB Standard: Group and individual behaviors

56. Lupita launched her all-female housing construction company two years ago. She has been successful and has been able to pay herself a salary for the last year. According to the GEM study, Lupita is a/an ______.

a. potential entrepreneur

b. nascent entrepreneur

c. new business owner

d. established business owner

Learning Objective: 16.8: Illustrate the global diversity of entrepreneurship.

Cognitive Domain: Application

Answer Location: 16.8. Global Entrepreneurship

Difficulty Level: Medium

AACSB Standard: Group and individual behaviors

57. Shida has had such great success with his IT consulting company for the last five years that he was able to pay himself a competitive salary within the first 18 months of operation. According to the GEM study, Shida is a/an ______.

a. potential entrepreneur

b. nascent entrepreneur

c. new business owner

d. established business owner

Learning Objective: 16.8: Illustrate the global diversity of entrepreneurship.

Cognitive Domain: Application

Answer Location: 16.8. Global Entrepreneurship

Difficulty Level: Medium

AACSB Standard: Group and individual behaviors

58. Xavier was laid off from his job at an industrial steel manufacturing plant. When he was unable to find employment after three months of searching, he started a small business offering mobile welding and metal construction services. According to the GEM study, Xavier is a/an ______.

a. opportunity-based entrepreneur

b. necessity-based entrepreneur

c. fearless entrepreneur

d. unnoticed entrepreneur

Learning Objective: 16.8: Illustrate the global diversity of entrepreneurship.

Cognitive Domain: Application

Answer Location: 16.8. Global Entrepreneurship

Difficulty Level: Medium

AACSB Standard: Group and individual behaviors

59. The GEM study focuses on the level of Total Entrepreneurial Activity (TEA) in different countries. In which of the following areas is TEA the lowest?

a. North America

b. the Caribbean

c. Latin America

d. Europe

Learning Objective: 16.8: Illustrate the global diversity of entrepreneurship.

Cognitive Domain: Application

Answer Location: 16.8. Global Entrepreneurship

Difficulty Level: Medium

AACSB Standard: Group and individual behaviors

60. Female entrepreneurs in Vietnam, Panama, Qatar, Madagascar, Thailand, Angola, and Indonesia face which of the following?

a. general support for women-owned ventures

b. societal dismissal of females as entrepreneurs

c. legal restrictions on female entrepreneurs

d. religious persecution for female entrepreneurs

Learning Objective: 16.8: Illustrate the global diversity of entrepreneurship.

Cognitive Domain: Application

Answer Location: Gender and Entrepreneurship

Difficulty Level: Medium

AACSB Standard: Group and individual behaviors

True/False

1. Large, complex social problems where there is no clear solution are described as wicked problems.

Learning Objective: 16.2: Explain how social entrepreneurship can help resolve wicked problems around the world that are connected to the United Nations Sustainable Development Goals.

Cognitive Domain: Knowledge

Answer Location: 16.2. Social Entrepreneurship and Wicked Problems

Difficulty Level: Medium

AACSB Standard: Social responsibility

2. A refugee crisis is an example of a wicked problem.

Learning Objective: 16.2: Explain how social entrepreneurship can help resolve wicked problems around the world that are connected to the United Nations Sustainable Development Goals.

Cognitive Domain: Comprehension

Answer Location: 16.2. Social Entrepreneurship and Wicked Problems

Difficulty Level: Easy

AACSB Standard: Social responsibility

3. Issues relating to the environment, poverty, sustainability, equality, education, child mortality, sanitation, terrorism, and health and wellness are all examples of wicked problems.

Learning Objective: 16.2: Explain how social entrepreneurship can help resolve wicked problems around the world that are connected to the United Nations Sustainable Development Goals.

Cognitive Domain: Knowledge

Answer Location: 16.2. Social Entrepreneurship and Wicked Problems

Difficulty Level: Medium

AACSB Standard: Social responsibility

4. A hybrid model of social entrepreneurship describes an organization with a purpose that equally emphasizes both economic and social goals.

Learning Objective: 16.6: Distinguish what role social entrepreneurship plays in society.

Answer Location: 16.1. The Role of Social Entrepreneurship

Difficulty Level: Medium

AACSB Standard: Social responsibility

5. Ventures with social consequence and social purpose are the same type of venture.

Learning Objective: 16.3: Identify the different types of social entrepreneurship.

Cognitive Domain: Comprehension

Answer Location: 16.3. Types of Social Entrepreneurship

Difficulty Level: Medium

AACSB Standard: Social responsibility

6. It is possible for enterprising nonprofits to use both venture philanthropy funding and earned-income activities.

Learning Objective: 16.3: Identify the different types of social entrepreneurship.

Cognitive Domain: Comprehension

Answer Location: 16.3. Types of Social Entrepreneurship

Difficulty Level: Medium

AACSB Standard: Social responsibility

7. Earned-income activities are the sale of products or services that are used as a source of revenue generation.

Learning Objective: 16.3: Identify the different types of social entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: 16.3. Types of Social Entrepreneurship

Difficulty Level: Medium

AACSB Standard: Social responsibility

8. Organizations using the hybrid model of social entrepreneurship prioritize social goals over economic goals.

Learning Objective: 16.3: Identify the different types of social entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: Hybrid Models of Social Entrepreneurship

Difficulty Level: Medium

AACSB Standard: Social responsibility

9. The “Buy One Give One” campaign is an example of a hybrid social venture model.

Learning Objective: 16.3: Identify the different types of social entrepreneurship.

Cognitive Domain: Comprehension

Answer Location: Hybrid Models of Social Entrepreneurship

Difficulty Level: Medium

AACSB Standard: Social responsibility

10. Social entrepreneurs use the fundamental principles of entrepreneurship to build businesses of economic and social value.

Learning Objective: 16.7: Explore audacious ideas being pursued by social entrepreneurs today.

Cognitive Domain: Comprehension

Answer Location: 16.7. Social Entrepreneurship and Audacious Ideas

Difficulty Level: Medium

AACSB Standard: Social responsibility

11. Labor unions can be considered a stakeholder in the context of entrepreneurship.

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Comprehension

Answer Location: 16.5. Social Entrepreneurs and Their Stakeholders

Difficulty Level: Medium

AACSB Standard: Social responsibility

12. It’s common for all stakeholders to be in immediate agreement in the context of social entrepreneurship.

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Comprehension

Answer Location: Types of Stakeholders

Difficulty Level: Medium

AACSB Standard: Social responsibility

13. Stakeholder attributes are relatively fixed.

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Comprehension

Answer Location: Types of Stakeholders

Difficulty Level: Medium

AACSB Standard: Social responsibility

14. CSR helps address social issues but often does so at the expense of business issues.

Learning Objective: 16.6: Distinguish between corporate social responsibility and social entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: 16.6. Differences Between Social Entrepreneurship and Corporate Social Responsibility

Difficulty Level: Medium

AACSB Standard: Social responsibility

15. A company striving to improve its brand and image by launching an initiative to improve environmental well-being is engaging in social entrepreneurship.

Learning Objective: 16.6: Distinguish between corporate social responsibility and social entrepreneurship.

Cognitive Domain: Application

Answer Location: 16.6. Differences Between Social Entrepreneurship and Corporate Social Responsibility

Difficulty Level: Medium

AACSB Standard: Application of knowledge

16. A company whose core mission is improving social issues is engaged in corporate social responsibility.

Learning Objective: 16.6: Distinguish between corporate social responsibility and social entrepreneurship.

Cognitive Domain: Comprehension

Answer Location: 16.6. Differences Between Social Entrepreneurship and Corporate Social Responsibility

Difficulty Level: Medium

AACSB Standard: Social responsibility

17. Social entrepreneurs must continuously monitor stakeholders and maintain relationships with them.

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Comprehension

Answer Location: Types of Stakeholders

Difficulty Level: Medium

AACSB Standard: Social responsibility

18. Microloans are small short-term loans given to people living in poverty that enables them to engage in entrepreneurship.

Learning Objective: 16.4: Explain how social entrepreneurs can use capital markets to fund their ventures.

Cognitive Domain: Comprehension

Answer Location: Microfinance as a Source of Social Financing

Difficulty Level: Medium

AACSB Standard: Social responsibility

19. The poverty-fighting non-profit Robin Hood Foundation is a good example of venture philanthropy fund.

Learning Objective: 16.3: Identify the different types of social entrepreneurship.

Cognitive Domain: Comprehension

Answer Location: Enterprising Nonprofits

Difficulty Level: Medium

AACSB Standard: Social responsibility

20. VisionSpring sells glasses to sustain itself rather than through donations; this is an example of a hybrid model of social entrepreneurship.

Learning Objective: 16.3: Identify the different types of social entrepreneurship.

Cognitive Domain: Application

Answer Location: Hybrid Models of Social Entrepreneurship

Difficulty Level: Easy

AACSB Standard: Social responsibility

21. Discretionary stakeholders have no power to influence.

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Knowledge

Answer Location: Discretionary Stakeholders

Difficulty Level: Medium

AACSB Standard: Social responsibility

22. Typically, venture philanthropy funding provides financial support for three to five years with the goal of enabling the venture to eventually become financially independent.

Learning Objective: 16.3: Identify the different types of social entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: Enterprising Nonprofits

Difficulty Level: Medium

AACSB Standard: Social responsibility

23. Clean energy provider BBOXX has transformed lives by developing technology to provide pay-as-you-go solar power in Africa and Asia, all thanks to social venture capitalists.

Learning Objective: 16.4: Explain how social entrepreneurs can use capital markets to fund their ventures.

Cognitive Domain: Application

Answer Location: 16.4. Capital Markets for Social Entrepreneurs

Difficulty Level: Medium

AACSB Standard: Application of knowledge

24. Kiva’s innovation in microlending was to allow anyone to loan small amounts of money to entrepreneurs in developing countries.

Learning Objective: 16.4: Explain how social entrepreneurs can use capital markets to fund their ventures.

Cognitive Domain: Knowledge

Answer Location: Microfinance as a Source of Social Financing

Difficulty Level: Easy

AACSB Standard: Social responsibility

25. According to the text, faith in the inherent goodness of social entrepreneurship is the key to resolving wicked problems.

Learning Objective:

Cognitive Domain: Knowledge

Answer Location: Conclusions From the Mitchell Stakeholder Typology

Difficulty Level: Medium

AACSB Standard: Social responsibility

Essay

1. Describe the differences between traditional nonprofits and enterprising nonprofits, including their strengths and weaknesses.

Learning Objective: 16.3: Identify the different types of social entrepreneurship.

Cognitive Domain: Analysis

Answer Location: Enterprising Nonprofits

Difficulty Level: Hard

AACSB Standard: Analytical thinking

2. Identify the key features of venture philanthropy. What is the goal of such funding? What, generally, do venture philanthropists look for and why?

Learning Objective: 16.3: Identify the different types of social entrepreneurship.

Cognitive Domain: Analysis

Answer Location: Enterprising Nonprofits

Difficulty Level: Medium

AACSB Standard: Social responsibility

3. Describe what role social entrepreneurship plays in society.

Learning Objective: 16.1: Describe the role social entrepreneurship plays in society.

Cognitive Domain: Comprehension

Answer Location: 16.1. The Role of Social Entrepreneurship

Difficulty Level: Medium

AACSB Standard: Social responsibility

4. Explain how social entrepreneurship can help resolve wicked problems around the world.

Learning Objective: 16.2: Explain how social entrepreneurship can help resolve wicked problems around the world that are connected to the United Nations Sustainable Development Goals.

Cognitive Domain: Comprehension

Answer Location: 16.2. Social Entrepreneurship and Wicked Problems

Difficulty Level: Medium

AACSB Standard: Social responsibility

5. Explain how social entrepreneurs can use capital markets to fund their ventures.

Learning Objective: 16.4: Explain how social entrepreneurs can use capital markets to fund their ventures.

Cognitive Domain: Comprehension

Answer Location: 16.4. Capital Markets for Social Entrepreneurs

Difficulty Level: Hard

AACSB Standard: Social responsibility

6. Identify the primary attributes of stakeholders and explain how stakeholders can help or hinder a social entrepreneur.

Learning Objective: 16.5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur.

Cognitive Domain: Comprehension

Answer Location: 16.5. Social Entrepreneurs and Their Stakeholders

Difficulty Level: Medium

AACSB Standard: Social responsibility

7. Distinguish between corporate social responsibility and social entrepreneurship.

Learning Objective: 16.6: Distinguish between corporate social responsibility and social entrepreneurship.

Cognitive Domain: Comprehension

Answer Location: 16.6. Differences Between Social Entrepreneurship and Corporate Social Responsibility

Difficulty Level: Medium

AACSB Standard: Social responsibility

8. Explain why CSR makes good business sense.

Learning Objective: 16.6: Distinguish between corporate social responsibility and social entrepreneurship.

Cognitive Domain: Comprehension

Answer Location: 16.6. Differences Between Social Entrepreneurship and Corporate Social Responsibility

Difficulty Level: Medium

AACSB Standard: Social responsibility

9. Explain how the hybrid model of entrepreneurship differs from social purpose ventures and enterprising nonprofits.

Learning Objective: 16.3: Identify the different types of social entrepreneurship.

Cognitive Domain: Comprehension

Answer Location: Hybrid Models of Social Entrepreneurship

Difficulty Level: Medium

AACSB Standard: Social responsibility

10. Describe the four phases of entrepreneurship as defined by the Global Entrepreneurship Monitor study.

Learning Objective: 16.8: Illustrate the global diversity of entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: 16.8. Global Entrepreneurship

Difficulty Level: Medium

AACSB Standard: Group and individual behaviors