Which of the following describes a social enterprise?

• A. A government agency
• B. A business that aims to improve human or environmental well‑being
• C. A charity that relies entirely on donations
• D. A business that maximizes profits for shareholders

Answer: (B)

A social enterprise blends business with a social purpose. It runs like a business—selling goods or services to make money—but the main aim is to use those profits to improve people’s lives or protect the environment, reinvesting to expand that impact rather than just lining owners’ pockets. That makes it different from a government agency, which is publicly funded and focused on public services; from a charity that relies only on donations and grants without a trading model; and from a conventional business that prioritizes profits for shareholders. For example, a company that sells products and uses part of its profits to fund training for unemployed people is operating as a social enterprise.