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An entrepreneur increases social impact but continuously loses money on every service. What is a sustainable solution?

Answer and explanation

Correct answer: Improve the pricing model, cost structure or partnership arrangement

Social impact cannot continue if every unit creates an unavoidable loss and no funding source covers it. The enterprise should examine pricing, delivery costs, cross-subsidy, grants, partnerships, or a more efficient service model. This protects the mission while improving financial continuity. Ignoring losses risks collapse, whereas abandoning quality or purpose is unnecessary. B is correct.

Related tags

Social-EntrepreneurshipFinancial-SustainabilityIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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