Entrepreneurship Chapter 4

The first of five steps for entering the international marketplace is:

conducting research

Key elements in plans to create a sustainable future are likely to include which of the following?

eliminating the concept of waste

Methods for going international include all of the following except:

foreign reclamation

Bottom-line measures of economic performance include all of the following except:

global competition

An L3C is a new legal form for social enterprises known as:

low-profit, limited liability companies

If we accept the argument that social entrepreneurship is a continuum, at one extreme would be social entrepreneurs driven exclusively by producing social benefits; at the other, would be:

social entrepreneurs motivated by profitability with social benefits being the means

Which of the following four factors is not included in the Social Corporate Entrepreneurship Scale (SCES) developed by researchers?

social intention

Social entrepreneurs can also be referred to as all of the following except:

social obligators

The social entrepreneur aims to increase which of the following?

social value

Examples of social enterprise obligations to the environment include all of the following except

support for minority-own businesses

Among the advantages for global entrepreneurs of diaspora networks are:

the speed with which information flows across borders

An account framework that goes beyond the traditional measures of profit, return on investment, and shareholder value to include environmental and social dimensions is called:

the triple bottom line

Green entrepreneurship is concerned with:

turning ecologically sustainable development into economically sustainable development

Licensing

A business arrangement in which the manufacturer of a product (or a firm with proprietary rights over technology or trademarks) grants permission to a group or an individual to manufacture that product in return for specified royalties or other payments

B corporation

A legal structure that expands corporate accountability to make decisions that are good for society, not just shareholders. B corporations' performance standards enable consumers to support businesses that align with their values

Social entrepreneurship

A new form of entrepreneurship that exhibits characteristics of nonprofits, government, and businesses; it applies traditional (privatesector) entrepreneurship's focus on innovation, risk taking, and large-scale transformation to social problem solving

European Union (EU)

An economic and political union of 27 member states located primarily in Europe

Global entrepreneurs

An entrepreneur who relies on global (international) networks for resources, design, and distribution

North American Free Trade Agreement (NAFTA)

An international agreement among Canada, Mexico, and the United States that eliminates trade barriers among the three nations

International alliances

Another alternative available to the entrepreneur in the international arena. There are three main types of these strategic alliances: informal international cooperative alliances, formal international cooperative alliances (ICAs), and international joint ventures.

Importing

Buying and shipping foreign-produced goods for domestic consumption

Social value

Contribution to the welfare or well-being in a given community

Market-rich countries

Countries have something that others need, thus forming the basis of an interdependent international trade system

Resource-rich countries

Countries have something that others need, thus forming the basis of an interdependent international trade system

Ecopreneurship

Environmental entrepreneurship with entrepreneurial actions contributing to preserving the natural environment, including the Earth, biodiversity, and ecosystems

T/F: International alliances rarely require the exchange of proprietary knowledge

False

T/F: Successful global start-ups, or entrepreneurial businesses that are "born global," surprisingly often lack internationally experienced management.

False

T/F: The triple bottom line is an accounting framework that focuses on optimizing short-term financial performance

False

Benefit corporation

It is exactly the same as traditional corporations except for a few specific elements that make them more socially sustainable enterprises: purpose, accountability, transparency

Exporting

It is the shipping of a domestically produced good to a foreign destination for consumption. Exporting is important for entrepreneurs because it often means increased market potential

Ecovision

Leadership style for innovative organizations. Encourages open and flexible structures that encompass the employees, the organization, and the environment, with attention to evolving social demands

Joint venture

Occurs when two or more firms analyze the benefits of creating a relationship, pool their resources, and create a new entity to undertake productive economic activity

Social impact investing

Raising funds for socially motivated causes

Diaspora networks

Relationships among ethnic groups that share cultural and social norms

Explain the concepts of shared vision and triple bottom line.

Shared value is an approach to creating economic value that also creates value for society by addressing its needs. It connects company success with social progress. The triple bottom line is an accounting framework that goes beyond the traditional measures of profit and ROI to include environmental and social dimensions.

Which of the following statements about social entrepreneurship is not true?

Social entrepreneurship is limited to the world of not-for-profit corporations

Learning curve concept

The time needed for new methods or procedures to be learned and mastered

Political risks

They include unstable governments, disruptions caused by territorial conflicts, wars, regionalism, illegal occupation, and political ideological differences

Shared value

Transformation of business thinking recognizing societal weaknesses that create internal costs for firms like wasted energy, accidents, and inadequacies in education

T/F: Ecopreneurship is a combination of ecologically and economically sustainable development

True

T/F: Licensing agreements can involve patents, trademarks, and technical know-how

True

T/F: Purpose, accountability, and transparency are characteristics associated with socially sustainable enterprises

True

T/F: Social entrepreneurs and their ventures are driven by social goals and aim to increase social value in order to contribute to the welfare or well-being in a given community

True

T/F: Social entrepreneurs are known to combine resources to exploit opportunities to create social value

True

T/F: The social entrepreneurship process begins with a perceived social opportunity translated into an enterprise concept

True

T/F: The three Ps of the triple bottom line are people, planet, and profits

True

Corporate social responsibility refers to:

actions that further some social good beyond the interests of the firm