A social enterprise in Kenya provides clean water systems to rural villages. It charges prices that cover costs but does not aim to make large profits for owners. What is the primary objective of this firm?

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Question

A social enterprise in Kenya provides clean water systems to rural villages. It charges prices that cover costs but does not aim to make large profits for owners. What is the primary objective of this firm?

Accepted Answer

Social welfare — Award 1 mark for identifying that a social enterprise prioritises community benefit over profit. A is incorrect — the firm explicitly does not aim for large profits. B is incorrect — sales revenue maximisation focuses on total revenue, not social goals. D is incorrect — shareholder value is a private sector profit-related objective.

Answer

Social welfare

Answer

Sales revenue maximisation

Answer

Shareholder value

Answer

Profit maximisation

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