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A social enterprise earns profit so that it can expand free services. Which belief does this challenge?

Answer and explanation

Correct answer: Profit and social purpose are always opposites

The direct answer is B: profit and social purpose are not always opposites. A social enterprise tries to solve a social or environmental problem, but it still needs money for workers, materials, transport, maintenance and expansion. In this example, the enterprise earns profit and uses it to provide more free services. Thus profit is the means, while the social benefit is the purpose. Option A states this idea, but it is not the belief being challenged; the question asks which belief is disproved, so B is the correct option. Option B is correct because the example shows that income can support a social aim. Option C is wrong because a free service still has costs, even when users pay nothing. Option D is wrong because every organised enterprise needs records and accounting to track income, expenses and responsible use of money. A social enterprise may earn profit without making profit its only goal. Exam cue: do not confuse the source of money with the purpose for which it is used.

Related tags

Social Enterprise MythProfitSocial PurposeFree ServiceMyths About EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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