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Flip to reveal answersDefine a social enterprise.
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All 10 Flashcards — Social enterprises
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Question
Define a social enterprise.
Answer
A business with a social or environmental mission that earns revenue through trading and reinvests profits into its mission.
💡 Hint
Mission + trading + reinvestment.
Question
What is the key exam takeaway about social enterprises and profit?
Answer
Profit is used as a tool to support the mission, and is mainly reinvested rather than paid out to owners.
💡 Hint
Profit supports mission.
Question
State two features of a social enterprise.
Answer
It operates like a business by selling goods/services, and it reinvests profits to achieve a social or environmental mission.
💡 Hint
Give 2 features: trading + mission.
Question
State two characteristics of social enterprises.
Answer
They prioritise a mission (social/environmental), and generate revenue from trading to fund that mission.
💡 Hint
Mission + trading.
Question
Why are social enterprises not the same as charities?
Answer
They are businesses that trade for income, rather than depending mainly on donations.
💡 Hint
Trading is the key difference.
Question
How is a social enterprise different from a charity?
Answer
A social enterprise mainly earns income from trading, while charities typically rely more on donations and grants.
💡 Hint
Trading vs donations.
Question
Why must social enterprises be financially sustainable?
Answer
They need sufficient revenue to cover costs and continue delivering their mission long term.
💡 Hint
Mission needs money to survive.
Question
Why are social enterprises not the same as for-profit firms?
Answer
For-profit firms mainly aim to maximise profit for owners, while social enterprises prioritise impact and reinvest profits into the mission.
💡 Hint
Impact first vs profit first.
Question
State one key exam line for 1.2.5.
Answer
Social enterprises blend business methods with a mission, using trading revenue to fund impact and reinvesting most profits.
💡 Hint
Blend: business + mission + reinvest.
Question
Give one example of a social enterprise activity.
Answer
Selling products or services (e.g., reusable bottles) and using profits to fund a social goal (e.g., clean water projects).
💡 Hint
Business activity + mission impact.
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Full study notes for Social enterprises
Topic 1.2 hub
Types of business entities
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