Week 6 - Creating your Business

What is the definition of social value?

• The price customers are willing to pay for a product

• The wider positive impact an organisation has on society and the environment, beyond financial benefits

• The profit margin a company achieves annually

• The brand reputation of a business

Which of the following is an example of a social enterprise?

• McDonald’s

• The Big Issue

• Amazon

• Apple

The Big Issue was launched in:

• 1985

• 1991

• 2001

• 2010

The Big Issue’s main aim was to:

• Sell magazines to raise money for charity

• Help homeless people earn a legitimate income

• Increase magazine sales in London

• Reduce unemployment among students

In the Big Issue business model, vendors buy magazines for £1.25 and sell them for £2.50. What is their profit per copy?

• £0.75

• £1.00

• £1.25

• £2.25

Which of the following is not a benefit of social enterprises?

• Fulfilling unmet social needs

• Attracting motivated staff willing to work for less

• Using all profits for shareholder dividends

• Offering meaningful work for career changers

Which of these is one of the two major conditions for financial viability?

• High customer satisfaction

• Profitability

• Innovation

• Social impact

According to the lecture, what is founder syndrome?

• When a founder invests heavily in their organisation

• When the founder holds too much control, resisting change and innovation

• When the founder is the sole decision-maker in the early stages

• When the founder creates a business for personal profit only

What is a potential challenge for The Big Issue?

• Lack of interest from vendors

• Decline in printed magazine sales

• Excess profits leading to overspending

• Too many vendors worldwide

Which of the following best describes a social enterprise?

• A charity that relies entirely on donations

• A government-funded service

• A business that trades for a social or environmental purpose

• A for-profit company with no social impact