Chapter 14: Social Enterprise and Earned Income
comprehensive Questions and Answers with 100%
Correct Answers | Latest Version
Question 1.
social enterprise
Correct Answer: most of all its revenue comes from fees for goods and services
rather than gifts or grants (may not be related to the mission)
Question 2.
earned income
Correct Answer: revenue from sales of goods directly re- lated to the organization's
mission
Question 3.
nonprofit business ventures
Correct Answer: nonprofit pairs with a for-profit company
Question 4.
Questions nonprofits should consider in evaluating earned income opportunities
Correct Answer: -Whether it is really successful or a waste of money -Does the
organization process marketable assets? -Are there assets that might be leveraged to
provide a source of revenue? -Is there a market opportunity waiting to be seized? Is
there an unmet need that consumers will be willing to pay to be met? -Does it have
the staffing, skills, financial resources and culture that will support the
entrepreneurial activity? cannot stretch an already suffering staff
Question 5.
licensing agreement
Correct Answer: agreement; contract the permits a for-profit name or logo on its
products in return for royalty payment to nonprofit -benefit to nonprofit is the revenue
it brings -benefit to company is its products with attract purchases from individuals
affiliated
Question 6.
sponsorship
Correct Answer: company pays for the use of its name or logo in connection with
nonprofits products or events; more commercial
, Question 7.
cause marketing
Correct Answer: FIXED AMOUNT; short term; encompass all relationships (licensing
and sponsorship) transaction based directly to amount of sales of the company's
product; governed by a contract between the nonprofit and corporate partner
Question 8.
joint venture
Correct Answer: activity/new entry jointly owned by two partners; become partners
Question 9.
operational relationships
Correct Answer: partner with company just to get supplies/workers
Question 10.
Process for identifying nonprofit earned-income ventures
Correct Answer: looking at/leveraging assets: -things you have: physical assets,
location, distribution, brand, patent, access to desired resource, relationships -things
you do: continuously innovate, manage info, produce low-cost goods, sustain
privileged assets, interact with clients, manufacture products, produce events -things
you know: understanding of specific issue, process expertise, market expertise,
people/key decision makers
Question 11.
Process for developing nonprofit earned-income ventures
Correct Answer: 1. Identify business opportunities 2. conduct feasibility analysis 3.
business plans
Question 12.
Steps of the Business Plan
Correct Answer: 1. Executive summary 2. description of the business 3. management,
organizational structure, key personnel 4. Market analysis and marketing plan 5.
Description of products and services 6. Operational plan 7. Financial assumptions 8.
Detailed financial plan 9. Uncertainties and risks 10. Plan for growth or exit
Question 13.
market analysis
Correct Answer: looks at feasibility to ensure there is a demand for the products or
services to be offered
comprehensive Questions and Answers with 100%
Correct Answers | Latest Version
Question 1.
social enterprise
Correct Answer: most of all its revenue comes from fees for goods and services
rather than gifts or grants (may not be related to the mission)
Question 2.
earned income
Correct Answer: revenue from sales of goods directly re- lated to the organization's
mission
Question 3.
nonprofit business ventures
Correct Answer: nonprofit pairs with a for-profit company
Question 4.
Questions nonprofits should consider in evaluating earned income opportunities
Correct Answer: -Whether it is really successful or a waste of money -Does the
organization process marketable assets? -Are there assets that might be leveraged to
provide a source of revenue? -Is there a market opportunity waiting to be seized? Is
there an unmet need that consumers will be willing to pay to be met? -Does it have
the staffing, skills, financial resources and culture that will support the
entrepreneurial activity? cannot stretch an already suffering staff
Question 5.
licensing agreement
Correct Answer: agreement; contract the permits a for-profit name or logo on its
products in return for royalty payment to nonprofit -benefit to nonprofit is the revenue
it brings -benefit to company is its products with attract purchases from individuals
affiliated
Question 6.
sponsorship
Correct Answer: company pays for the use of its name or logo in connection with
nonprofits products or events; more commercial
, Question 7.
cause marketing
Correct Answer: FIXED AMOUNT; short term; encompass all relationships (licensing
and sponsorship) transaction based directly to amount of sales of the company's
product; governed by a contract between the nonprofit and corporate partner
Question 8.
joint venture
Correct Answer: activity/new entry jointly owned by two partners; become partners
Question 9.
operational relationships
Correct Answer: partner with company just to get supplies/workers
Question 10.
Process for identifying nonprofit earned-income ventures
Correct Answer: looking at/leveraging assets: -things you have: physical assets,
location, distribution, brand, patent, access to desired resource, relationships -things
you do: continuously innovate, manage info, produce low-cost goods, sustain
privileged assets, interact with clients, manufacture products, produce events -things
you know: understanding of specific issue, process expertise, market expertise,
people/key decision makers
Question 11.
Process for developing nonprofit earned-income ventures
Correct Answer: 1. Identify business opportunities 2. conduct feasibility analysis 3.
business plans
Question 12.
Steps of the Business Plan
Correct Answer: 1. Executive summary 2. description of the business 3. management,
organizational structure, key personnel 4. Market analysis and marketing plan 5.
Description of products and services 6. Operational plan 7. Financial assumptions 8.
Detailed financial plan 9. Uncertainties and risks 10. Plan for growth or exit
Question 13.
market analysis
Correct Answer: looks at feasibility to ensure there is a demand for the products or
services to be offered
