Corporate Social Responsibility Practice Test 2026 – Complete Exam Prep

Social entrepreneurship is primarily about developing profitable solutions to social issues. This approach combines innovative practices and business principles to address pressing challenges faced by society, such as poverty, education, healthcare, and environmental sustainability. Social entrepreneurs seek to create social value while also achieving financial sustainability, leveraging market forces to bring about change.

The essence of social entrepreneurship lies in its dual-focus: it aims not only to generate profit but also to make a significant positive impact on communities or societal structures. This approach is fundamentally different from businesses focused solely on maximizing profits, as social entrepreneurs are driven by their mission to solve social problems while ensuring that their solutions are economically viable.

Option A is centered on profit maximization without regard to social impact, which does not align with the core principles of social entrepreneurship. Option B focuses on operational efficiency, a business concept that may or may not have social implications, but is not specifically tied to addressing social issues. Similarly, option D, which pertains to expanding market reach, does not capture the primary objective of social entrepreneurship, which is to tackle social challenges through innovative and sustainable business models while generating profit.