Chapter 3

Which is one of the main goals of the UNs SDGs? Eradicate all wicked problems. Create many new jobs worldwide. Address issues related to chronic health conditions. Improve the profits generated by businesses.

Address issues related to chronic health conditions.

For-profit social ventures consider profit as an added benefit to achieving their social mission. True False

False

The focus of the UN Sustainable Development Goals is to bring recycling to all countries. True False

False

Venture philanthropists fund and support for-profit social ventures until they become financially self-sustaining. True False

False

Which is true about the actions of an impact investment fund? It shields the identity of its participants. It specializes in microloans. It invests in economic development in impoverished areas. It seeks a return on investment and aims to make a social impact.

It seeks a return on investment and aims to make a social impact.

A botanist develops a plant that can grow in areas with heavy metal contaminants. The plants can take up the heavy metals from the soil, detoxifying it. The metals can then be extracted from the plants and sold. The botanist starts a company to grow and harvest the plants and sell the extracted metals. Based on this information, what is true? The botanist has created a social innovation. The botanist has created a solution with low social value. This company is a type of traditional entrepreneurship. This company would be considered an NGO.

The botanist has created a social innovation.

An environmental chemist has devoted their entrepreneurial life to imagining, prototyping, and manufacturing water purification devices on a small-scale in order to serve remote populations around the world. This has required working with many different agencies and experts to fully tackle the problem. Which is true about this entrepreneur? They are limiting the amount of social value created. They are functioning as a social venture capitalist. They are addressing a wicked problem. They are focusing on earned-income activities.

They are addressing a wicked problem.

we are's summer camps use a three-pronged approach in delivering programs that provide anti-racism education. What does this reflect about wicked problems such as racism? They are problems with complex solutions. They can be solved by a single entrepreneur. They can be smaller problems or bigger problems. They are problems that can be solved easily.

They are problems with complex solutions.

The founders of 4ocean started their enterprise when they went surfing and noticed a large amount of plastic in the ocean, which was damaging to the ecosystem. They found that this also influenced the livelihood of fishers, who caught more plastic than fish. They now pay fishers for the plastic they catch, which removes plastic from the ocean and provides funds to fishers. They then sell bracelets created from the ocean plastics for a profit. Which is true about this scenario? They rely on an employee model to generate revenue. They would be considered an enterprising nonprofit. They are tackling a complex social problem. They are not generating social value.

They are tackling a complex social problem.

Compared to other types of social investors, venture philanthropists tend to be more involved in managerial aspects of the ventures they fund. True False

True

For-profit organizations that also address social and/or environmental problems are said to be creating shared value. True False

True

Goodwill, the organization that trains hundreds of thousands of people and operates more than 3,000 donation clothing stores across the United States, is an enterprising nonprofit. True False

True

In developing a theory of change plan, one important question to consider is how to reach your key audience. True False

True

Social entrepreneurship is the process of sourcing innovative solutions to social and environmental problems. True False

True

The social venture capitalist (SVC) market is a growing one. True False

True

How does the linear economy differ from the circular economy? Within the linear economy, products are considered "higher end" than products in the circular economy are. Unlike the linear economy, the circular economy focuses on recycling products to reduce waste. The target customer is different across these two economies. Within the linear economy, products are produced via an assembly line, as opposed to the more handcrafted items found in the circular economy.

Unlike the linear economy, the circular economy focuses on recycling products to reduce waste.

The SROI is best described as ______. an income projection an estimate of social value a sustainability index a cost-benefit ratio

a cost-benefit ratio

One challenge this entrepreneur faces is raising enough money to sustain her venture. Which type of stakeholder might be helpful to bring into the organization to take on this challenge directly without taking away power from the entrepreneur in the video? a discretionary stakeholder a dominant stakeholder a demanding stakeholder a dormant stakeholder

a discretionary stakeholder

There are many different types of stakeholders in any organization. According to the video, what is the biggest challenge that this entrepreneur identifies in supporting community stakeholders? establishing a curriculum that is appropriate for her customers accessing a much needed group who would benefit from the services of this business finding the right team to carry her unique message creating a need for her services

accessing a much needed group who would benefit from the services of this business

we are offers which of the following services to stakeholders? school curriculums for all students and parents anti-racism training for parents and educators engaging immigrant and refugee populations making people feel excited about inclusion

anti-racism training for parents and educators

You oversee an enterprise that is focused on funding artists to beautify a city's new walking paths. Who of the following would be classified as dominant stakeholders in this scenario? city council members the artists individuals who live in the neighborhoods along the walking paths people who walk around the city

city council members

Which type of stakeholder has no power to influence and no urgent claims but is a legitimate stakeholder? dependent dangerous definitive discretionary

discretionary

Which type of stakeholders have both power and legitimacy? discretionary dangerous demanding dominant

dominant

Social venture capitalists do not invest for financial gain but may receive a tax benefit. True False

false

When an entrepreneur starts a business to both resolve a social problem and make a profit, they are embarking on a(n) ______. employee model of revenue generation for profit social venture enterprising nonprofit combined model of revenue generation

for profit social venture

According to the video, one of the three main goals of the summer camp is ______. raising money for future camps equipping businesses with tools and resources helping children build a historical understanding of racism helping children understand their identities as individuals

helping children build a historical understanding of racism

Which term describes social ventures that are for-profit with a philanthropic orientation? emergent nonconforming nontraditional hybrid

hybrid

A for-profit pet food company donates a bag of dog food to no-kill shelters for every bag it sells. Which best describes this? enterprising nonprofit employee model of revenue generation social venture capitalism hybrid social venture

hybrid social venture

The number of people assisted by a nonprofit is an example of a(n) social ______. impact measurement venture return on investment venture capital

impact measurement

When assessing the attributes of stakeholders, a social entrepreneur must consider if the stakeholder's actions are appropriate, proper, and desired (within the enterprise's context). If so, what is that stakeholder said to have? legitimacy power urgency leadership

legitimacy

we are's summer camps incorporate ______ in their work to solve a wicked problem. swimming and water safety a sports participation component field trips to famous landmarks and historical sites literacy-based, age appropriate curriculums

literacy-based, age appropriate curriculums

A dormant, or "sleeper," stakeholder is one who has ______. power and urgency, but may be coercive power but doesn't use it unless given a reason no power to influence and no urgent claims urgency and legitimacy but no power

power but doesn't use it unless given a reason

A nonprofit that generates funds by selling items uses which form of revenue generation? combined product employee customer

product

Which model will help social entrepreneurs prioritize the needs of different stakeholders at a particular time? impact salience pyramid influence-ranking

salience

The main factors in calculating SROI are ______. social value and environmental value social impact value and cost sponsor investment funding and return sustainable return and investment

social impact value and cost

Unlike traditional solutions, social innovations tend to ______. generate higher income be decreasing in popularity create lower value solve more complex problems

solve more complex problems

The MUD Jeans founder wants to engage customers in the mission of ______. education sustainability equality activism

sustainability

When a social entrepreneur is evaluating stakeholders, what does "urgency" refer to? the extent to which a stakeholder demands attention the extent to which the stakeholder can hurt or help the enterprise the stakeholder's track record on responding to events the stakeholder's closeness to a particular issue

the extent to which a stakeholder demands attention

What is the main difference between social and traditional entrepreneurs? the services or solutions they innovate the mission they set out to accomplish whether they use a particular type of marketing initiative whether they are starting a new organization

the mission they set out to accomplish

Sustainability is considered a "wicked problem" because ______. the legal guidelines surrounding it are unclear there are no resources available to tackle it there is no clear solution very few people care about it

there is no clear solution

Social value is created when a social innovation is ______. profitable used invented implemented

used

Complex, large-scale social problems with no clear solution were termed ______ problems by scholars in the 1960s. intolerable value-neutral wicked structural

wicked

Which is true about implementation in social innovation? It can occur within an existing organization. It cannot occur without consideration of UNSDGs. It must not involve more than a few stakeholders. It must eliminate a wicked problem.

It can occur within an existing organization.