Question 1

Sue and Daniel are discussing the importance of having a strong founding team for building a successful social venture. As they assemble their founding team, they come to you for advice. Specifically, they would like you to indicate the aspects they must consider when building the founding team. You would probably tell them to consider the following characteristics, except:

A) Prior entrepreneurial experience.
B) Industry experience (in the sector where the new venture will operate)
C) Networking.
D) Foreign language skills.

D

Accepted Answer

While foreign language skills may be helpful in certain circumstances, it is not a critical aspect to consider when building a founding team for a social venture. Prior entrepreneurial experience, industry experience, and networking are all important characteristics that can contribute to the success of the venture.

Question 2

Claire derives personal satisfaction from working for a social venture that assists young single mothers in her city. She also feels morally engaged and has a sense of personal pride by providing assistance to these young single mothers. This is an example of ___________.

A) Extrinsic motivation.
B) Job satisfaction.
C) Job dissatisfaction.
D) Psych income.

D

Accepted Answer

Psych income refers to the non-financial benefits one gains from their work, such as personal satisfaction, moral engagement, and a sense of pride, which is what Claire experiences by working for a social venture that assists young single mothers.

Question 3

A set of policies and procedures aimed at attracting and retaining volunteers in a social business is best described as __________.&#10;A) Relationship marketing.&#10;B) Human resources management.&#10;C) Volunteer management systems.&#10;D) Performance appraisal system.

Accepted Answer

Policies and procedures aimed at attracting and retaining volunteers in a social business are typically referred to as volunteer management systems. Options A and B are not specific enough to describe this type of system, and option D is not relevant in this context.

Question 4

After graduating from College, Michael decided to work for Mercy Care, a social venture established in Ghana. Michael is not paid for his services to Mercy Care. All he wants is to provide his time 'freely' to benefit kids in the Volta region of Ghana so that they may be able to go to school. Which of the following professional statuses characterizes Michael?

A) Paid employee.
B) Volunteer.
C) Consultant.
D) Board member.

Accepted Answer

Michael is not being paid for his services, which makes him a volunteer.

Question 5

Which of the following is not a component of the motivational plan of a social venture for paid employees?&#10;A) Organizational factors.&#10;B) Stock options.&#10;C) Job characteristics.&#10;D) Psych income.

Accepted Answer

Stock options are not typically included in the motivational plan for paid employees in a social venture. The other options, such as organizational factors, job characteristics, and psych income, are common components used to motivate employees in social enterprises.

Question 6

Before making a decision to hire paid employees, a social venture must address the following questions, except:&#10;A) What type of assistance is needed?&#10;B) Why is this type of assistance needed?&#10;C) What skills and abilities should the potential employee(s) have?&#10;D) How much should each employee be paid?

Accepted Answer

The question lists three important questions that a social venture must address before hiring paid employees. However, it also includes an extraneous question (question D) about how much each employee should be paid, which is not necessarily a fundamental question in deciding whether or not to hire employees.

Question 7

A board of advisers is different from a board of directors because it ________.&#10;A) Selects top managers.&#10;B) Approves the long-term strategies of the firm.&#10;C) Is not elected by shareholders and does not have any legal authority over the firm.&#10;D) Its advice is legally bound.

Accepted Answer

A board of advisers is a group of external experts who provide advice and guidance to a company's management team. They are not elected by shareholders and do not have any legal authority over the firm. On the other hand, a board of directors is responsible for making key decisions and overseeing the management team. They are elected by shareholders and have legal authority over the firm. Therefore, choice C is the correct answer.

Question 8

Which of the following can be seen as an interface between a social venture and its external stakeholders?&#10;A) Board of directors.&#10;B) Employees.&#10;C) Volunteers.&#10;D) Beneficiaries.

Accepted Answer

The board of directors serves as a bridge between the social venture and its external stakeholders, such as investors, government agencies, and donors. They represent the interests of these stakeholders and ensure that the social venture is accountable to them. Employees, volunteers, and beneficiaries are all internal stakeholders of the social venture and are not considered part of the interface between the venture and its external stakeholders.

Question 9

Which theory assumes that the agent will not always act in the best interests of the principal because of goal conflict between the two?&#10;A) Signaling theory.&#10;B) Agency theory.&#10;C) Equity theory.&#10;D) Stakeholder theory.

Accepted Answer

Agency theory assumes that the agent, who is acting on behalf of the principal, may not always act in the best interests of the principal because of goal conflict between the two parties. This conflict arises due to information asymmetry and differing interests.

Question 10

Which of the following questions must social ventures that contemplate having a board of directors not consider?&#10;A) How many members will the board have?&#10;B) How and when will the board members be elected?&#10;C) Do they make money in their current occupations?&#10;D) What term will they serve?

Accepted Answer

The financial status of the board members' current occupations is not relevant to their ability to serve on a board of directors for a social venture. The other questions are important for determining the structure and responsibility of the board.

Deck 11: Managing People in Social Ventures