Question 1

The explicit social benefit that a social venture provides to its intended beneficiaries is best described as __________.

Accepted Answer

Social impact refers to the explicit social benefit that a social venture provides to its intended beneficiaries. Effectiveness, intended goals, and objectives are related but not the best descriptions of the social benefit provided.

Question 2

Which of the following is not an area of focus in measuring social return on investment?

Accepted Answer

Employee engagement is primarily an internal organizational focus, related to human resources management, rather than a direct factor in measuring social return on investment (SROI), which is more concerned with external impacts and outcomes.

Question 3

_________ refers to the measure of the economic and social value of a social venture.

Accepted Answer

Social return of investment (SROI) measures the economic, social, and environmental value created by a social venture, taking into account the costs incurred by the venture. It is a comprehensive tool for evaluating the impact of a social venture and can be used to compare different ventures and assess their effectiveness. Cost-benefit analysis (A) is a similar method that compares the costs and benefits of a particular project to determine whether it is worth undertaking. Cost-effectiveness analysis (B) assesses the relative costs and outcomes of different interventions but does not take into account the broader social impact of the venture. Economic value (D) only measures the financial value of a venture and does not take into account its social or environmental impact.

Question 4

The combination of economic and social outputs in measuring a social venture's impact is best known as __________.

Accepted Answer

Blended value accounting is the combination of economic and social outputs in measuring a social venture's impact. Cost-benefit analysis focuses primarily on financial aspects and weighs the costs against the benefits, while cost-effectiveness analysis measures the efficiency of achieving outcomes. Social franchising refers to using business franchising models to achieve social or environmental goals.

Question 5

If you were asked to measure the impact of a social venture by comparing the relative costs and outcomes of two or more courses of action and assign any monetary value to the measure of effect, you would probably use _________.

Accepted Answer

Cost-benefit analysis is the method used to compare the relative costs and outcomes of different courses of action and to assign monetary values to the measure of effect, allowing for a comprehensive evaluation of the financial impact of a social venture.

Question 6

If you were asked to measure the impact of a social venture by comparing the relative costs and outcomes of two or more courses of action without assigning any monetary value to the measure of effect, you would probably use __________.

Accepted Answer

Cost-effectiveness analysis is a method of comparing the costs of alternative courses of action with their outcomes measured in non-monetary units. This method does not assign a monetary value to the measure of effect and is therefore the most appropriate choice for measuring the impact of a social venture in this scenario. Cost-benefit analysis, on the other hand, requires the conversion of all outcomes into monetary values, while social and blended value accounting focus on measuring and reporting both financial and non-financial impacts.

Question 7

Social impact reporting can help social entrepreneurs in the following ways except:

Accepted Answer

Social impact reporting can enhance the performance of social entrepreneurs, access extra resources, and build organizational legitimacy. However, it does not directly increase the number of board members.

Question 8

Which of the following is not a step taken when measuring the social impact of a social venture?

Accepted Answer

Describing the social venture's financial statements is not a step in measuring the social impact of a social venture. The other three steps involve defining the social value proposition, quantifying the social value, and monetizing the social value.

Question 9

The following are aspects of measuring social impact, except:

Accepted Answer

The aspects of measuring social impact are accountability, evaluation, and outcomes. Competitiveness is not an aspect of measuring social impact.

Question 10

_________ focuses on the study of the impact that a given intervention has on society.

Accepted Answer

The study of the impact that a given intervention has on society is the focus of Social Impact Management, which includes techniques for measuring and assessing the social, economic, and environmental outcomes of an intervention. Cost-benefit analysis and cost-effectiveness analysis, on the other hand, are specific tools used in economic analysis, while blended value accounting is a broader approach to measuring both social and financial performance of an organization.

Quiz 14: Strategies for Exiting a Social Venture