1.Peter, the founder of MilkWorld Inc., started his dairy company with the intent of creating a formidable supply-chain link and providing a lucrative source of income for the local dairy farmers in his country. Peter is most likely to be considered a(n): 

  A. investment manager. 

  B. venture capitalist. 

  C. social entrepreneur. 

  D. angel investor. 

2.Which of the following statements is true of shared values? 

  A. Profit and social welfare are substitutes that managers must trade off to create shared values.

  B. Shared values entail transferring the ability to effectively perform tasks from one organization to another.

  C. Shared values focus on the improvement of both the economic and social welfare of a firm.

  D. Shared values focus solely on the income and wealth outcomes of an organization. 

3.Which of the following statements is true of the value net model?

  A. It typically focuses on large-scale social problems that have proven difficult for governments or other social actors to solve.

  B. It focuses on improving the value of each of the stakeholders in a value chain by assigning them rigid goals and tasks.

  C. It treats a particular stakeholder as a “single-role player” to facilitate effective decision making.

  D. It describes how an organization interacts with others in its environment to create value.

4.In the context of the value net model, an individual or organization that makes customers value an organization’s output more because of its product or service is known as a(n) _____.

  A. customer 

  B. supplier 

  C. complementor 

  D. competitor 

5.Which of the following statements is true of the skills of social entrepreneurs?

  A. A social bricoleur is of primary importance in organizations focusing on capacity building.

  B. A social engineer focuses primarily on developing new products or services with the intent of building capacity.

  C. A social constructor agitates for change and focuses on designing more effective social systems.

  D. A social constructor combines existing resources for value creation with the intent of institutional change.

6.Which of the following describes those living in conditions of extreme poverty around the world, usually defined as less than $2 per day?

  A. Base of the pyramid 

  B. Backward integration 

  C. Line of sight 

  D. Value net