What is another term for the social capital market?

The intrinsic investing market

The impact investing market

The individual investing market

The issue investing market

Question 2

Financial-first investors are best described as:

Commercial investors who search for subsectors that offer market-rate returns

A group that uses social or environmental good as a primary objective and may accept a range of returns, from principal to market-rate

Investors who are not driven by fiduciary requirements, as in the case of pension plans

A group that is able to take a lower than market rate of return in order to seed new investment funds that may be perceived as higher risk

Question 3

Social ventures capital funds are quite restrictive in that they target conventional market rates of return and focus on ___________________________.

Industries with unknown social benefits, such as environmental technologies or microfinance

All of the above

Industries with inherent social benefits, such as environmental technologies or microfinance

A reasonable rate of return within a specified time period

Question 4

What is the main difference between behavioral finance and traditional finance?

Traditional finance tells us that both investors and social entrepreneurs deal with the real-world complexity of financial markets by relying on heuristics versus behavioral finance that uses models in which people are self-interested and rational

Behavioral finance tells us that both investors and social entrepreneurs deal with the real-world complexity of financial markets by relying on heuristics versus traditional finance that uses models in which people are self-interested and rational

There is no main difference: both behavioral finance and traditional finance tell us that both investors and social entrepreneurs deal with the real-world complexity of financial markets by relying on heuristics but neither use models in which people are self-interested and rational

There is no main difference: both behavioral finance and traditional finance tell us that both investors and social entrepreneurs deal with the real-world complexity of financial markets by relying on heuristics and use models in which people are self-interested and rational

Question 5

Altruism, externalities (e.g., climate change), and information asymmetries all create opportunities for impact investors to make a difference. The opportunities for the field include which of the following?

Early successes in the fields of microfinance, community development, and clean tech

All of the above are opportunities for the field

Greater recognition of the need for effective solutions to social and environmental challenges

A growing interest among capital providers who seek diversification and a new approach to money management that enables them to also make a difference

Question 6

Under which condition can corporations be good partners for a social enterprise?

If the communication goals are aligned

If the financial goals are aligned

Under none condition

If the impact goals are aligned

Question 7

Which tool cannot be used by investors to generate impact across their publicly traded as well as private market investments?

Guarantees

Screening

Active ownership strategies

All three tools can be used

Question 8

May investors make both financial-first and impact-first investments?

No, they only make financial first investments

Yes, they may

No, they make neither financial-first investment not impact-first investments

No, they only make impact-first investments

Question 9

There are several concerns when a social entrepreneur is trying to find the right match between the venture and investors goals. Which of the following concerns should be considered?

Issues, evaluation, personnel and approaches

Motivation, issues, evaluation and personnel

Motivation, issues, evaluation and approaches

Issues, evaluation, personnel and finances

Question 10

Which of the following questions about the financial drivers of an enterprise cannot direct the social entrepreneur to the appropriate capital sources?

What are the operating inefficiencies to the business plan that can require additional revenue or increase expenses?

What are the earned income opportunities for the enterprise?

What assets does the enterprise own or control which could be used as collateral to support debt?

Is financial sustainability a viable goal given the social or environmental mission of the enterprise?