Question

Identify the appropriate business model of the kind of enterprise described by the author.

• A. Servicing societies at no profit
• B. Profiting from poor people
• C. Setting up enterprises for masses of low-income groups on experimental basis.
• D. Setting up enterprises for social causes for profit and expand rapidly
• A. SKS Micro finance
• B. Acumen Fund
• C. Ziqitza
• D. Vaatsalya Healthcare
• A. NRI’s paying back to their motherland.
• B. Those affluent, middle-class professionals treating it as charity.
• C. Those who work towards getting financial returns on social business by expanding quickly.
• D. Those who have sympathetic investors for their business ideas for poor.

Answer 1

The Correct Option is D

Step 1: Understand the question
The question is asking us to identify the appropriate business model of the enterprises described in the passage. The article mentions examples like Vaatsalya Healthcare, Ziqitza ambulance services, and SKS Microfinance. These enterprises are designed not simply as charities, but as businesses that can sustain themselves while solving social problems.

Step 2: Examine the characteristics of the enterprises
- They directly target social causes such as rural healthcare, emergency medical services, and microfinance.
- They are not dependent solely on donations or charity but function as profit-making organizations.
- They measure success both in terms of social impact and financial returns.
- Because they are accountable to investors, they focus on growing and expanding their services rapidly.

Step 3: Evidence from the passage
The article clearly states: "Mere charity by an affluent, middle-class professional? Far from it." This highlights that these are not traditional charities. Another line says, "For profit entrepreneurs are obsessed with social and environmental impact in addition to financial returns." Furthermore, "Since they are answerable to the investors, they try expanding the business rapidly." This confirms the dual focus on profit and social good, combined with rapid scaling.

Step 4: Conclusion
The enterprises described are best explained as models that combine social objectives with profitability and rapid expansion. They are set up as businesses to solve social issues, while also ensuring sustainability and accountability to investors.

Final Answer: The correct option is (D): Setting up enterprises for social causes for profit and expand rapidly.

Answer 2

Step 1: Understand the question
The question asks us to identify which company mentioned in the passage does not directly illustrate the idea of a social enterprise that is set up to make profit while solving social problems. To answer this, we need to carefully recall the role of each company discussed in the excerpt.

Step 2: Recall the examples given in the passage
1. Vaatsalya Healthcare – a rural healthcare system that charges patients but focuses on providing specialized services to villages. It is a clear example of a for-profit social enterprise.
2. Ziqitza ambulance services – provides emergency transport, charges a minimal fee of Rs. 50 to 200, never refuses patients for lack of money. Another example of a social enterprise that makes money but serves society.
3. SKS Microfinance – provides loans to poor households, earns returns while helping people access credit. Again, this fits the model of a for-profit social venture.
4. Acumen Fund – this is described as a US-based social fund that invests in such companies. It is not itself a service-delivering social enterprise, but rather a financing organization that supports these entrepreneurs.

Step 3: Analyze the mismatch
The author’s main idea revolves around enterprises that combine social good with profit while scaling up. Vaatsalya, Ziqitza, and SKS all fit directly into this description because they operate businesses. Acumen Fund, however, is not an operating enterprise but an investment fund that provides money to these companies. Therefore, it does not directly illustrate the model explained, though it supports such ventures.

Step 4: Conclusion
Since Acumen Fund is not itself an enterprise providing services or products but a funding organization, it does not represent the core idea described by the author.

Final Answer: The correct option is (B): Acumen Fund.

Answer 3

Step 1: Understand the question
The question asks what best describes the meaning of "for profit" entrepreneurs as explained in the passage. The focus is not just on profit-making, but on the unique balance of social impact and financial return that these entrepreneurs pursue.

Step 2: Recall details from the passage
The author explains that these entrepreneurs are not doing mere charity. They establish enterprises with the goal of providing vital services like healthcare, microfinance, and emergency aid, but they operate on a profit model. At the same time, because they are answerable to investors, they cannot remain small. They are driven to expand quickly and scale their operations while ensuring both social impact and financial sustainability.

Step 3: Key characteristics of "for profit" entrepreneurs
- They care deeply about solving social and environmental problems.
- They are structured as businesses that make profits, not as charities.
- They deliver services to low-income communities while generating financial returns.
- They aim to expand rapidly because investors expect growth alongside impact.

Step 4: Match with the given options
Option (C) states: "Those who work towards getting financial returns on social business by expanding quickly." This fits perfectly, as it combines all three aspects: financial returns, social business, and rapid expansion.

Step 5: Conclusion
The passage makes it clear that "for profit" entrepreneurs are people who grow businesses that deliver social services while ensuring profits and fast growth.

Final Answer: The correct option is (C): Those who work towards getting financial returns on social business by expanding quickly.