CHAPTER 04 SOCIAL ENTREPRENEURSHIP AND THE

GLOBAL ENVIRONMENT FOR ENTREPRENEURSHIP

TRUEFALSE

1. Social responsibility consists of those obligations that society has to businesses.

(A) True

(B) False

Answer : (B)

2. Social obligation, social responsibility, and social responsiveness are all ways firms view their
interactions with society.

(A) True

(B) False

Answer : (A)

3. Social entrepreneurship avoids private-sector focus on risk taking.

(A) True

(B) False

Answer : (B)

4. Social entrepreneurs are known to combine resources to exploit opportunities to create social
value.

(A) True

(B) False

Answer : (A)

5. Social entrepreneurship is rarely a vehicle for sustainable development.

(A) True

(B) False

Answer : (B)

6. The Brundtland definition of sustainable development is "meeting the needs of the present
without compromising the ability of future generations to meet their needs."

(A) True

(B) False

Answer : (A)

7. For-profit enterprises have yet to make significant contributions to the world of social
entrepreneurship.

(A) True

(B) False

Answer : (B)

8. Ecopreneurship is a combination of ecologically and economically sustainable development.

(A) True

(B) False

Answer : (A)

9. The triple bottom line is an accounting framework that focuses on optimizing short-term financial
performance.

(A) True

(B) False

Answer : (B)

10. The three dimensions of performance associated with the TBL are people, planet, and profits.

(A) True

(B) False

Answer : (B)

11. Bottom-line measures of social performance include the unemployment rate and health-adjusted
life expectancy.

(A) True

(B) False
Answer : (A)

12. Benefit corporations are one of the oldest forms of incorporation, having been adopted in all 50
states.

(A) True

(B) False

Answer : (B)

13. Purpose, accountability, and transparency are characteristics associated with socially
sustainable enterprises.

(A) True

(B) False

Answer : (A)

14. Social obligation, social responsibility, and social responsiveness are all ways firms view their
interactions with society.

(A) True

(B) False

Answer : (A)

15. Thanks to the North American Free Trade Agreement, each year thousands of smaller
enterprises are actively engaged in the international arena.

(A) True

(B) False

Answer : (A)

16. Resource-rich countries and market-rich countries are usually one and the same.

(A) True

(B) False

Answer : (B)

17. Successful global start-ups, or entrepreneurial businesses that are "born global," surprisingly
often lack internationally experienced management.
(A) True

(B) False

Answer : (B)

18. Importing, in essence, is buying and shipping domestically produced goods for foreign
consumption.

(A) True

(B) False

Answer : (B)

19. There are three main types of strategic international alliances.

(A) True

(B) False

Answer : (A)

20. Licensing agreements can involve patents, trademarks, and technical know-how.

(A) True

(B) False

Answer : (A)

MULTICHOICE

21. One researcher believes that the social mission, not wealth creation, is the most important
criterion. Who was this researcher?

(A) Dean A. Shepherd

(B) William McDonough

(C) Holger Pazel

(D) J. Gregory Dees

Answer : (D)

22. ​Which of the following activities does not characterize the social entrepreneur?
(A) adoption of a mission

(B) recognition and relentless pursuit of opportunities

(C) operating with a low sense of accountability

(D) engagement in continuous innovation and learning

Answer : (C)

23. What type of risks incorporates fluctuating exchange rates?

(A) social risks

(B) economic risks

(C) political risks

(D) financial risks

Answer : (D)

24. Which of the following designations is not synonymous with social entrepreneur?

(A) social innovator

(B) public entrepreneur

(C) civic entrepreneur

(D) social impersonator

Answer : (D)

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

(A) Social entrepreneurship is limited to the world of not-for-profit corporations.

(B) Social entrepreneurship is about having a heightened sense of accountability

(C) Social entrepreneurship has, in recent years, been the subject of widespread media attention.

(D) Social entrepreneurship adopts some of the same principles that have been effective in
successful entrepreneurship.

Answer : (A)

26. 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

(A) social entrepreneurs motivated by the environment with social benefits being the means.
(B) social entrepreneurs motivated by profitability with social benefits being the means.

(C) social entrepreneurs motivated by income from their beneficiaries.

(D) social entrepreneurs motivated by income with entrepreneurial means.

Answer : (B)

27. The basic challenge for social enterprise is addressing the obligations of business to

(A) future generations.

(B) financial performance.

(C) different industries.

(D) society.

Answer : (D)

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

(A) pollution control.

(B) restoration of the environment.

(C) recycling efforts.

(D) support for minority-own businesses.

Answer : (D)

29. Global entrepreneurs are now considered by others as

(A) weaker in innovation.

(B) wearing different hats.

(C) narrow-minded.

(D) only dedicated to global business aspects.

Answer : (B)

30. Corporate social responsibility refers to

(A) the enhancement of global competition.

(B) environmental entrepreneurship in the United States.

(C) actions that further some social good beyond the interests of the firm.
(D) the effect of ecopreneurship only on some industries.

Answer : (C)

31. Ecopreneurs are concerned

(A) only with ecologically sustainable development.

(B) only with economically sustainable development.

(C) both ecologically and economically sustainable development.

(D) neither ecologically nor economically sustainable development.

Answer : (B)

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

(A) eliminating the concept conservation

(B) eliminating the concept of waste

(C) eliminating the concept of "price"

(D) eliminating the concept of accountability

Answer : (B)

33. 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

(A) the shared bottom line.

(B) the value proposition.

(C) the triple bottom line.

(D) the twin bottom line.

Answer : (C)

34. TBL focuses on all the following except

(A) profits.

(B) people.

(C) the planet.

(D) precedence.
Answer : (D)

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

(A) global competition.

(B) personal income.

(C) cost of underemployment.

(D) job growth.

Answer : (A)

36. Benefit corporations concern themselves with

(A) purpose and transparency.

(B) accountability.

(C) accountability and transparency.

(D) purpose, accountability, and transparency.

Answer : (D)

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

(A) limited liability corporations.

(B) low-profit, limited liability companies.

(C) long-term, low-profit, low-liability companies.

(D) limited liability laborers.

Answer : (B)

38. Emerging opportunities in the international arena are being fueled by

(A) an increase in trade barriers and the emergence of trading blocs.

(B) a decrease in trade barriers and the emergence of trading blocs.

(C) a decrease in trade barriers and a decline in trading blocs.

(D) an increase in trade barriers and a decline in trading blocs.

Answer : (B)
39. Among the advantages for global entrepreneurs of diaspora networks is

(A) the speed with which information flows across borders.

(B) the distrust among traditional trading partners.

(C) the creation of places where anything can happen.

(D) the decline in political risks across ethnic communities.

Answer : (A)

40. Membership in the World Trade Organization represents __________ of the world's population at
present.

(A) 85 percent

(B) 92 percent

(C) 95 percent

(D) 97 percent

Answer : (D)

41. North American Free Trade Agreement (NAFTA) has developed

(A) new trade barriers that have been enacted by Canada.

(B) trade barrier reductions.

(C) a decrease in trade among the United States, Canada, and Mexico.

(D) entrepreneurial firms that have become less competitive.

Answer : (B)

42. NAFTA (North American Free Trade Agreement) offers strong protection for

(A) patents and copyrights.

(B) patents but not copyrights.

(C) patents and copyrights but not trade secrets.

(D) patents, copyrights, and trade secrets.

Answer : (B)

43. As of 2015, the largest U.S. trading partners included

(A) Canada, China, and Mexico.

(B) China, Mexico, and Turkey.

(C) Canada, Mexico, and India.

(D) China, India, and South Korea.

Answer : (A)

44. Methods for going international include all of the following except

(A) importing.

(B) exporting.

(C) licensing.

(D) foreign reclamation.

Answer : (D)

45. The first of five steps for entering the international marketplace is

(A) securing adequate financing.

(B) filing the proper documents.

(C) conducting research.

(D) preparing a feasibility study.

Answer : (C)

ESSAY

46. List some activities that have come to be associated with social entrepreneurship.

Graders Info :

Adoption of a mission to create and sustain social value; recognition and relentless pursuit of
opportunities for social value; engagement in continuous innovation and learning; action beyond the
limited resources at hand; heightened sense of accountability.

47. Why has sustainable development, perhaps, become the most prominent topic of our time?
Graders Info :

Reports of ozone depletion, climate change, and the destruction of the planet's biodiversity are
commonplace, and scholars have claimed that entrepreneurial action can preserve ecosystems,
counteract climate change, and deduce environmental degradation and deforestation.

48. In the context of benefit corporations, what does transparency refer to?

Graders Info :

Transparency refers to the obligation to report to the public on a firm's overall social and
environmental performance, using a credible third-party standard.

49. Why is "global thinking" important to today's entrepreneurs?

Graders Info :

Global thinking is important to today's entrepreneurs because today's consumers can select
products, ideas, and services from many nations and cultures. One of the most exciting and
promising avenues for entrepreneurs to expand their businesses is by participating in the global
marketplace.

50. Explain the concept of informal international alliances. What path do entrepreneurs usually
follow with respect to informal international alliances?

Graders Info :

In general, informal alliances are agreements between companies from two or more countries that
are not legally binding. Because such agreements lack legal protection, most entrepreneurs limit
their involvement with informal alliances or avoid them altogether.