EMI1

The concept of microfinance primarily differs from traditional finance because it:

• Operates through commercial banks under government regulation.

• Focuses on maximizing profits from high-interest loans.

• Targets the financially excluded to promote sustainable livelihoods.

• Requires collateral for all types of loans.

Among the goals of microfinance, which ensures that the organization can serve both current and future generations of clients?

• Impact

• Sustainability

• Outreach

• Inclusion

“Outreach” as a goal of microfinance can best be measured by:

• The total profits generated by microfinance institutions.

• The number of clients served.

• The internal efficiency of the organization.

• The speed of loan disbursement.

Which of the following best exemplifies the impact of microfinance?

• The increase in the institution’s loan portfolio.

• A family improving its living standards.

• The reduction of interest rates in formal banking.

• The ability of MFIs to collect repayments on time.

In microfinance, the sustainable environment goal primarily emphasizes:

• Expanding outreach to rural borrowers.

• Encouraging eco-friendly livelihood activities.

• Investing only in large-scale industries.

• Reducing the number of clients served.

One of Ghandi’s (2021) key points is that microfinance creates chances for employment. This is mainly because:

• Borrowers are forced to hire new workers.

• Credit allows entrepreneurs to expand operations.

• Loans are provided only to jobless individuals.

• Employment is guaranteed by the government.

Innovation is not the same as invention because:

• Invention only applies to science and technology.

• Innovation involves introducing something new that adds value.

• Invention is easier to implement in business.

• Innovation does not involve change.

Which of the following best captures Howard Schultz’s view of innovation?

• Innovation should disrupt existing norms to create progress.

• Innovation should focus on gradual change to avoid risk.

• Innovation must imitate existing successful models.

• Innovation should maintain traditional practices for stability.

According to Sullivan (2008), innovation is relevant to all organizations because:

• All institutions face the same competitive environment.

• Every organization can improve its value through change.

• Innovation replaces all traditional business models.

• Only large organizations can sustain innovation.

The idea that innovation helps businesses “stay ahead of competition” means:

• Innovation ensures total market control.

• Companies that innovate remain adaptive to customer needs.

• Innovation limits changes in business operations.

• Competitors are discouraged from entering the market.