Chapter 16: Social Entrepreneurship and Innovation

Test Bank

Multiple Choice

1. What is a person who creates value by improving efficiency and effectiveness in the use of society’s limited resources called?

A. founder

B. capitalist

C. industrialist

D. entrepreneur

Learning Objective: 16-2: Explain the role of entrepreneurs in society and the economy.

Cognitive Domain: Knowledge

Answer Location: Defining and Understanding Social Entrepreneurship

Difficulty Level: Easy

2. What is the process by which organizations adhering to old ways decline and disappear called?

A. social destruction

B. social annihilation

C. creative destruction

D. organizational ruination

Learning Objective: 16-5: Identify characteristics that hinder or enhance innovation in existing organizations.

Cognitive Domain: Comprehension

Answer Location: Defining and Understanding Social Entrepreneurship

Difficulty Level: Medium

3. Those reflecting the ______ school define a social entrepreneur is someone who starts a business with a social purpose.

A. nonprofit sector

B. corporate world

C. social enterprise

D. social innovation

Learning Objective: 16-2: Explain the role of entrepreneurs in society and the economy.

Cognitive Domain: Knowledge

Answer Location: Social Enterprise School

Difficulty Level: Easy

4. Those who embrace the ______ school believe a social entrepreneur is a change agent who produces change that improves the condition of people and society.

A. nonprofit sector

B. corporate world

C. social enterprise

D. social innovation

Learning Objective: 16-2: Explain the role of entrepreneurs in society and the economy.

Cognitive Domain: Knowledge

Answer Location: Social Innovation School

Difficulty Level: Easy

5. What is an individual whose job is to drive creativity and innovation within an organization called?

A. enterpriser

B. intrapreneur

C. entrepreneur

D. creative director

Learning Objective: 16-2: Explain the role of entrepreneurs in society and the economy.

Cognitive Domain: Knowledge

Answer Location: Social Innovation School

Difficulty Level: Easy

6. According to Dees and colleagues, where others see problems, entrepreneurs see ______.

A. doubt

B. a quick fix

C. predicaments

D. opportunities

Learning Objective: 16-3: Summarize theories that explain entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: Theories of Social Entrepreneurship

Difficulty Level: Easy

7. The changes during the first decade of the 21st century were often disruptive and provided new opportunities for social entrepreneurship across the globe. What is this disruption called?

A. perturbation

B. disturbance

C. global innovation

D. creative destruction

Learning Objective: 16-3: Summarize theories that explain entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: Theories of Social Entrepreneurship

Difficulty Level: Easy

8. ______ occurs when the right person is in the right place at the right time with the right skills.

A. Change

B. Perfection

C. Social nirvana

D. Value proposition

Learning Objective: 16-3: Summarize theories that explain entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: Theories of Social Entrepreneurship

Difficulty Level: Easy

9. Social entrepreneurs who focus on creating wide-scale change embrace the teaching of the social ______ school.

A. change

B. enterprise

C. innovation

D. improvement

Learning Objective: 16-1: Define social entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: Social Innovation School

Difficulty Level: Easy

10. Crutchfield and Grant argue that exemplary organizations all have created committed ______ working on their behalf.

A. advocates

B. lobbyists

C. economists

D. entrepreneurs

Learning Objective: 16-4: Describe characteristics of high-impact nonprofit organizations.

Cognitive Domain: Knowledge

Answer Location: Building High-Impact Nonprofits

Difficulty Level: Easy

11. Seelos and Mair developed a model of _______ that leaders use to improve organizational capacity.

A. environmental analysis

B. continuous improvement

C. research and development

D. human resource management

Learning Objective: 16-5: Identify characteristics that hinder or enhance innovation in existing organizations.

Cognitive Domain: Comprehension

Answer Location: Sustaining Innovation

Difficulty Level: Easy

12. The Youth Advocacy Center encourages young people to ______:

A. set goals

B. get medical care

C. obtain job experience

D. seek drug rehabilitation treatment

Learning Objective: 16-2: Explain the role of entrepreneurs in society and the economy.

Cognitive Domain: Knowledge

Answer Location: Social Entrepreneurship Across Fields and Around the World

Difficulty Level: Easy

13. The “scientific charity” movement emerged during the ______ century.

A. 17th

B. 18th

C. 19th

D. 20th

Learning Objective: 16-2: Explain the role of entrepreneurs in society and the economy.

Cognitive Domain: Knowledge

Answer Location: History of Social Entrepreneurship as a Field

Difficulty Level: Easy

14. Professionalized philanthropy emerged in the United States during the ______ century.

A. 17th

B. 18th

C. 19th

D. 20th

Learning Objective: 16-2: Explain the role of entrepreneurs in society and the economy..

Cognitive Domain: Knowledge

Answer Location: History of Social Entrepreneurship as a Field

Difficulty Level: Easy

15. Which tool listed below provides leaders powerful questions to answer when wanting to achieve organizational change?

A. path-goal theory

B. hierarchy of needs

C. situational leadership theory

C. social transformation life cycle

Learning Objective: 16-3: Summarize theories that explain entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: Sustaining Innovation

Difficulty Level: Easy

16. Which social entrepreneur helped improve the transport of farmers’ goods to markets in Ghana?

A. Bill Gates

B. Richard Seshie

C. Gerald Chertavian

D. Diana Propper de Callejon

Learning Objective: 16-2: Explain the role of entrepreneurs in society and the economy.

Cognitive Domain: Knowledge

Answer Location: Social Entrepreneurship Across Fields and Around the World

Difficulty Level: Easy

17. ______ in developing nations are often controlled by vested interests that resist change.

A. Banks

B. Governments

C. Public schools

D. Nongovernmental organizations

Learning Objective: 16-5: Identify characteristics that hinder or enhance innovation in existing organizations.

Cognitive Domain: Knowledge

Answer Location: Social Entrepreneurship Across Fields and Around the World

Difficulty Level: Easy

18. Yunus considers voluntary giving in support of nongovernmental organizations a form of ______.

A. microfinance

B. entrepreneurship

C. trickle-down economics

D. social value proposition

Learning Objective: 16-5: Identify characteristics that hinder or enhance innovation in existing organizations.

Cognitive Domain: Knowledge

Answer Location: Social Entrepreneurship Across Fields and Around the World

Difficulty Level: Easy

19. Paul Light criticizes social entrepreneurship ______.

A. as a fantasy

B. as stewardship

C. as a tool for innovation

D. for encouraging collaborations

Learning Objective: 16-5: Identify characteristics that hinder or enhance innovation in existing organizations.

Cognitive Domain: Knowledge

Answer Location: The Future of Social Entrepreneurship

Difficulty Level: Easy

20. A social business is not ______.

A. a charity

B. cause-driven

C. driven by poverty

D. social enterprise

Learning Objective: 16-5: Identify characteristics that hinder or enhance innovation in existing organizations.

Cognitive Domain: Knowledge

Answer Location: The Future of Social Entrepreneurship

Difficulty Level: Easy

21. The Edward M. Kennedy Serve America Act created the ______.

A. Social Innovation Fund

B. government grant given to Ashoka

C. presidential summit on entrepreneurship

D. Corporation for National and Community Service

Learning Objective: 16-5: Identify characteristics that hinder or enhance innovation in existing organizations.

Cognitive Domain: Knowledge

Answer Location: The Future of Social Entrepreneurship

Difficulty Level: Easy

22. Paul Light argues that the term “social entrepreneurship” should be replaced with the term ______ service.

A. civic

B. social

C. public

D. nonprofit

Learning Objective: 16-5: Identify characteristics that hinder or enhance innovation in existing organizations.

Cognitive Domain: Knowledge

Answer Location: The Future of Social Entrepreneurship

Difficulty Level: Easy

23. Worth writes a result of the global recession of 2007–2009 was a/an ______.

A. increase in charitable giving

B. increase in educational programs

C. decrease in government social programs

D. increase in the creation of global foundations

Learning Objective: 16-5: Identify characteristics that hinder or enhance innovation in existing organizations.

Cognitive Domain: Knowledge

Answer Location: The Future of Social Entrepreneurship

Difficulty Level: Easy

24. Worth writes that social entrepreneurs are ______ forces.

A. positive

B. disruptive

C. encouraging

D. discouraging

Learning Objective: 16-5: Identify characteristics that hinder or enhance innovation in existing organizations.

Cognitive Domain: Knowledge

Answer Location: Chapter Summary

Difficulty Level: Easy

25. Social entrepreneurship gained popularity in the 1990s due to the examples of ______.

A. Ashoka and Echoing Green

B. Duke and Harvard Universities

C. IBM and the Gates Foundation

D. Xerox and the Rockefeller Foundation

Learning Objective: 16-4: Describe characteristics of high-impact nonprofit organizations.

Cognitive Domain: Knowledge

Answer Location: Chapter Summary

Difficulty Level: Easy

26. Global governments are likely to see social entrepreneurship as ______.

A. a tool for developing socialistic economies

B. a tool for developing free market economies

C. dominant forms of business in the global marketplace

D. complementary to the traditional approach of philanthropy

Learning Objective: 16-2: Explain the role of entrepreneurs in society and the economy.

Cognitive Domain: Knowledge

Answer Location: The Future of Social Entrepreneurship.

Difficulty Level: Easy

27. Social entrepreneurship is a strategy for ______.

A. solving social problems

B. developing socialistic markets

C. developing free market economies

D. increasing tax shelters for wealthy individuals

Learning Objective: 16-1: Define social entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: Chapter Summary.

Difficulty Level: Easy

28. Who describes social entrepreneurs as “restless people seeking to deal with problems that were not being successfully coped with by existing institutions?”

A. Steve Case

B. Henry Ford

C. Peter Goldmark

D. Joseph Schumpeter

Learning Objective: 16-1: Define social entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: Chapter Summary

Difficulty Level: Easy

29. Crutchfield and Grant write that high-performing organizations ______.

A. do not share leadership

B. master the art of adaptation

C. create new markets

D. discourage nonprofit networks

Learning Objective: 16-4: Describe characteristics of high-impact nonprofit organizations.

Cognitive Domain: Knowledge

Answer Location: Building High-Impact Nonprofits

Difficulty Level: Easy

30. The French verb “entreprendre” means to ______.

A. work

B. wish

C. walk

D. undertake

Learning Objective: 16-1: Define social entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: Defining and Understanding Social Entrepreneurship

Difficulty Level: Easy

31. Dees and Anderson recommend the social enterprise school and the social innovation school be blended into one school referred to as ______.

A. impact socialization

B. enterprising social innovation

C. creative and innovative enterprises

D. economic and social entrepreneurship

Learning Objective: 16-1: Define social entrepreneurship

Cognitive Domain: Knowledge

Answer Location: Social Innovation School

Difficulty Level: Easy

True/False

1. The theories of social entrepreneurship are similar to the theories of leadership.

Learning Objective: 16-3: Summarize theories that explain entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: Theories of Social Entrepreneurship

Difficulty Level: Easy

2. As of 2017, funding for the Edward M. Kennedy Serve America Act was certain.

Learning Objective: 16-5: Identify characteristics that hinder or enhance innovation in existing organizations.

Cognitive Domain: Knowledge

Answer Location: The Future of Social Entrepreneurship.

Difficulty Level: Easy

3. Social entrepreneurs have a low tolerance for ambiguity.

Learning Objective: 16-3: Summarize theories that explain entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: Theories of Social Entrepreneurship

Difficulty Level: Easy

4. Social entrepreneurs exhibit a heightened sense of accountability to their constituencies.

Learning Objective: 16-3: Summarize theories that explain entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: Theories of Social Entrepreneurship

Difficulty Level: Easy

5. Social entrepreneurship strategies are disruptive.

Learning Objective: 16-1: Define social entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: Chapter Summary

Difficulty Level: Easy

6. Social entrepreneurship is a subject of worldwide interest to philanthropists.

Learning Objective: 16-2: Explain the role of entrepreneurs in society and the economy

Cognitive Domain: Knowledge

Answer Location: The Future of Social Entrepreneurship

Difficulty Level: Easy

7. Bill Drayton is the founder of the Grameen Bank.

Learning Objective: 16-2: Explain the role of entrepreneurs in society and the economy

Cognitive Domain: Knowledge

Answer Location: History of Social Entrepreneurship as a Field

Difficulty Level: Easy

8. Habitat for Humanity is an example of a high-impact nonprofit organization.

Learning Objective: 16-4: Describe characteristics of high-impact nonprofit organizations.

Cognitive Domain: Knowledge

Answer Location: Building High-Impact Nonprofits

Difficulty Level: Easy

9. Ashoka was founded to identify the most promising social entrepreneurs in the world.

Learning Objective: 16-2: Explain the role of entrepreneurs in society and the economy.

Cognitive Domain: Knowledge

Answer Location: History of Social Entrepreneurship as a Field

Difficulty Level: Easy

10. Yunus characterizes social businesses as those that have owners who are not poor.

Learning Objective: 16-2: Explain the role of entrepreneurs in society and the economy.

Cognitive Domain: Knowledge

Answer Location: Social Entrepreneurship Across Fields and Around the World

Difficulty Level: Easy

Short Answer

1. Identify and explain demographic characteristics common among entrepreneurs.

Learning Objective: 16-3: Summarize theories that explain entrepreneurship.

Cognitive Domain: Comprehension

Answer Location: Theories of Social Entrepreneurship

Difficulty Level: Medium

2. Identify and list psychological characteristics entrepreneurs commonly exhibit.

Learning Objective: 16-3: Summarize theories that explain entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: Theories of Social Entrepreneurship

Difficulty Level: Easy

3. Identify behaviors, according to Dees and colleagues, that entrepreneurs engage in.

Learning Objective: 16-3: Summarize theories that explain entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: Theories of Social Entrepreneurship

Difficulty Level: Easy

4. Select a nonprofit organization that you are familiar with. Apply the Wei-Skillern, Austin, Leonard, and Stevenson’s model of entrepreneurship to that organization.

Learning Objective: 16-3: Summarize theories that explain entrepreneurship.

Cognitive Domain: Application

Answer Location: Theories of Social Entrepreneurship

Difficulty Level: Medium

5. Explain what happens in the “perfect storm” for entrepreneurship, as identified by Brooks.

Learning Objective: 16-3: Summarize theories that explain entrepreneurship.

Cognitive Domain: Comprehension

Answer Location: Theories of Social Entrepreneurship

Difficulty Level: Medium

6. Explain Ashoka’s six categories of Fellows and provide an example of each.

Learning Objective: 16-2: Explain the role of entrepreneurs in society and the economy.

Cognitive Domain: Analysis

Answer Location: Social Entrepreneurship Across Fields and Around the World

Difficulty Level: Hard

7. Explain the work of the Awaaz Foundation.

Learning Objective: 16-2: Explain the role of entrepreneurs in society and the economy.

Cognitive Domain: Comprehension

Answer Location: Social Entrepreneurship Across Fields and Around the World

Difficulty Level: Medium

8. Explain how Ashoka Fellows are selected.

Learning Objective: 16-2: Explain the role of entrepreneurs in society and the economy.

Cognitive Domain: Comprehension

Answer Location: Social Entrepreneurship Across Fields and Around the World

Difficulty Level: Medium

9. Explain Mohammad Alhabsyi’s contributions to social entrepreneurship.

Learning Objective: 16-2: Explain the role of entrepreneurs in society and the economy.

Cognitive Domain: Comprehension

Answer Location: Social Entrepreneurship Across Fields and Around the World

Difficulty Level: Medium

10. Evaluate the human rights movement within Costa Rica as it relates to social entrepreneurship.

Learning Objective: 16-2: Explain the role of entrepreneurs in society and the economy.

Cognitive Domain: Analysis

Answer Location: Social Entrepreneurship Across Fields and Around the World

Difficulty Level: Hard

11. Discuss the role Community Wealth Partners plays in social entrepreneurship.

Learning Objective: 16-4: Describe characteristics of high-impact nonprofit organizations.

Cognitive Domain: Comprehension

Answer Location: Building High-Impact Nonprofits

Difficulty Level: Medium