An entrepreneur's concern that his values will be reflected in firm practices after retirement is an example of which concept?

• A. Entrepreneurial legacy
• B. Social entrepreneurship
• C. Strategic planning
• D. Corporate governance

Answer: (A)

This item tests entrepreneurial legacy—the lasting influence a founder wants to imprint on the firm so that its culture, ethics, and practices endure after retirement. By aiming for values to be reflected in how the business operates in the long term, the founder ensures decisions, behavior, and reputation remain aligned with his beliefs even when he’s no longer at the helm. This differs from social entrepreneurship, which centers on using business to address social problems; strategic planning, which focuses on setting future goals and resources; and corporate governance, which concerns the system of oversight and control. The idea here is the enduring imprint of the founder’s principles on the company’s everyday operations.