Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
Chapter 4: Supporting Social Entrepreneurship
Test Bank
Multiple Choice
1. Social entrepreneurs and traditional entrepreneurs are similar in that:
a. both measure success solely based on profit
b. both have the same mission and goals
c. both measure success solely based on improving societal well-being
d. both identify opportunities
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
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
4. Jim Poss created Bigbelly, Inc., a for-profit company that builds trash cans that allows
garbage to be compacted using solar energy. Jim Poss is an example of:
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Neck, Entrepreneurship
SAGE Publishing, 2018
a. an angel investor
b. a social entrepreneur
c. a traditional entrepreneur
d. a venture capitalist
5. A NGO is ______.
a. a government organization
b. a nongovernmental organization
c. a nonprofit operation of the government
d. the operational name of the United Nations
6. Dr. G. Venkataswamy was able to treat tens of millions of patients in India through his
Aravind Eye Care System by:
a. applying conventional problem-solving techniques
b. seeking financial assistance from the government
c. built his own manufacturing plan that used less expensive technology
d. not accepting patients who couldn’t travel to his hospitals
7. Wicked problems are defined as:
a. problems without conflicting values
b. large, complex social problems with no clear solution
c. problems with clear and abundant information
d. problems with obvious solutions
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
8. The combination of financial assistance such as grants with a high level of
engagement by the funder is known as __________?
a. earned-income activities
b. venture philanthropy funding
c. performance measurement
d. nonfinancial support
9. Which of the following is an example a wicked problem?
a. A startup that is running out of cash
b. A founder who is determining her target market
c. A venture striving to reduce childhood mortality
d. A venture striving to diversity its offerings
10. Which of the following is an example of a wicked problem?
a. A community attempting to prevent terrorism
b. A community building a new hospital
c. A community seeking to attract entrepreneurs
d. A community focused on repaving its roads
11. Overpopulation and the dramatic increase in life expectancy are examples of
______.
a. easily solved problems
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
b. wicked problems
c. issues only relevant to developing countries
d. problems with a clear solution
12. Which of the following is an example of a wicked problem?
a. widespread famine in war-torn regions in Africa
b. limited access to healthcare in rural India
c. the global refugee crisis
d. all of these
13. Nigerian investor and philanthropist Tony Elumelu has an alternate solution to the
refugee problem. He has decided to:
a. ask the United Nations for special sanctions and funding
b. invest $100 million to support entrepreneurship in African countries with refugees
living in poverty.
c. lobby to roll back governmental regulations
d. start a food bank in Nigeria
14. Which of the following is NOT true of wicked problems?
a. Every wicked problem is essentially the same.
b. Solutions to wicked problems are not right or wrong.
c. Wicked problems have no given alternative solutions.
d. Every solution to a wicked problem is a “one shot operation.”
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
15. The aim of a social purpose venture is to:
a. only resolve a social problem
b. only make a profit
c. both resolve a social problem and make a profit
d. create awareness about a social issue
16. The organic clothing company PACT designs, manufactures, and distributes
premium cotton underwear without using pesticides, fertilizers, or chemicals. PACT is
an example of:
a. a nonprofit venture
b. a social purpose venture
c. a tech start-up
d. a government organization
17. Social consequence entrepreneurship describes:
a. a for-profit venture whose primary market impact is financial
b. a non-profit venture whose primary market impact is financial
c. a non-profit venture whose primary market impact is social
d. a for-profit venture whose primary market impact is social
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
18. Sword and 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 veteran organizations. Sword and Plough is an example of:
a. a nonprofit venture
b. an example of social consequence entrepreneurship
c. an example of a social purpose venture
d. an example of a traditional venture
19. 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
20. Which type of venture primarily has an economic market impact and economic
venture mission?
a. traditional venture
b. social purpose venture
c. social consequence venture
d. enterprising nonprofit venture
21. Which type of venture primarily has a social market impact and social venture
mission?
a. traditional venture
b. social purpose venture
c. social consequence venture
d. enterprising nonprofit venture
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
22. Which type of venture primarily has an economic market impact and social venture
mission?
a. traditional venture
b. social purpose venture
c. social consequence venture
d. enterprising nonprofit venture
23. Which type of venture primarily has a social market impact and economic venture
mission?
a. traditional venture
b. social purpose venture
c. social consequence venture
d. enterprising nonprofit venture
24. 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 with a high level of engagement by the
funder
d. sell products or services that are used as a source of revenue generation
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
25. The Woodland Park Zoo sells exotic animal dung to the public who can then use the
dung as garden fertilizer. This is an example of:
a. earned-income activities
b. venture philanthropy funding
c. performance measurement
d. nonfinancial support
26. 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 high level of engagement from consultants with no financial support
27. A venture philanthropist who is focused on building the long-term viability of the
organization, achieving greater social impact, and operational efficiency is focused on:
a. providing multiyear support
b. organizational capacity building
c. performance measurement
d. tailored financing
28. A hybrid model of social entrepreneurship:
a. describes a social venture that offers both products and services
b. describes an organization with a purpose the primarily emphasizes social goals
c. describes an organization with a purpose that equally emphasizes both economic and
social goals
d. describes an organization with a purpose the primarily emphasizes economic goals
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
29. ______ can seek investment from social venture capitalists known as impact-
investment funds.
a. Both nonprofit and for-profit organizations
b. Only nonprofit organizations
c. Only for-profit organizations
d. Only social purpose ventures
30. 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
31. In the context of social entrepreneurship, stakeholders refer to:
a. all the people or groups effected by or involved with 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
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Neck, Entrepreneurship
SAGE Publishing, 2018
32. 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
33. ____ behave in ways that are appropriate, proper, and desired in the context of the
organization or community.
a. Powerful stakeholders
b. Legitimate stakeholders
c. Urgent stakeholders
d. Dangerous stakeholders
34. ____ have the ability to either help or hinder your social objections.
a. Powerful stakeholders
b. Discretionary stakeholders
c. Demanding stakeholders
d. Dependent stakeholders
35. ____ demand your attention.
a. Non-stakeholders
b. Dormant stakeholders
c. Urgent stakeholders
d. Discretionary stakeholders Ans: C
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
36. 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
37. 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
38. Stakeholders who possess the urgency attribute but have not power or legitimacy
are considered:
a. dormant stakeholders
b. discretionary stakeholders
c. demanding stakeholders
d. definitive stakeholders
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
39. 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
40. Stakeholders who have power, legitimacy, strong influence are considered:
a. dominant stakeholders
b. discretionary stakeholders
c. dependent stakeholders
d. definitive stakeholders
41. 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
42. Stakeholders who posses power, legitimacy, and urgency are considered:
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
a. dormant stakeholders
b. discretionary stakeholders
c. dependent stakeholders
d. definitive stakeholders
43. 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
44. 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
45. Michele has both power and legitimacy. 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
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
d. dominant stakeholder
46. Janell has the 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. dominant stakeholder
47. Robert has power and a strong sense of urgency but he has been known to use this
power to coerce and manipulate. Social issues can be emotive and he can be a
hindrance for resolution. Robert is an example of a:
a. dependent stakeholder
b. dangerous stakeholder
c. definitive stakeholder
d. dominant stakeholder
48. Alison possesses power, legitimacy, and urgency. She usually has a significant role
to play in an organization and must be given priority when it comes to handling her
issues. Alison is an example of a:
a. dependent stakeholder
b. dangerous stakeholder
c. definitive stakeholder
d. dormant stakeholder
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
49. CSR stands for:
a. corporate social responsibility
b. consolidated social reporting
c. customer service relationships
d. customer social responsibility
50. A corporation with profit goals can have a CSR strategy if:
a. they treat their customers responsibly
b. pursue social objectives in addition to pursing profit
c. they maximize their charitable contributions
d. they reinvest all their profits into the company
51. The biggest difference between social entrepreneurship and corporate social
responsibility is:
a. social entrepreneurship places 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