Crowdly

What broader dilemma does Verge Capital face in choosing

between the two enterprises? (Select ONE)

Balancing social impact potential with financial

sustainability.

Choosing profit over ethics.

Avoiding stakeholder scrutiny.

Maximising loan size rather than impact.

Whether to prioritise environmental over

social impact.

Why might Sri Lankan Foods be perceived as a higher

execution risk investment? (Select ONE)

The business lacks customer demand.

The enterprise lacks environmental

relevance.

Limited managerial experience in scaling a

larger operation.

Its social mission is weakly defined.

The business model is entirely untested.

Why does Material Impact raise concerns despite its strong

early growth? (Select ALL that apply)

Lack of measurable social impact.

Heavy reliance on a single sales platform

(Amazon).

Uncertainty about long-term financial

sustainability.

Aggressive growth targets may strain

operational capacity.

Absence of community partnerships.

What role does the investment decision matrix play in

Verge Capital’s lending process? (Select ALL that apply)

It replaces managerial judgement with

mechanical scoring.

It prioritises social impact over financial

viability.

evaluates entrepreneur character and execution capability.

It improves consistency and transparency in

decisions.

It structures assessment across financial,

social, and operational dimensions.

Why is impact

measurement particularly challenging for Verge Capital? (Select ALL that apply)

Impact assessment is costly and

resource-intensive.

There are no universally accepted impact

measurement standards.

Social and environmental impacts vary

across sectors and regions.

Impact cannot be reported to investors.

Impact measurement focuses only on financial

outputs.

What is Verge

Capital’s core objective as a place-based impact investing organisation?

(Select ONE)

To replace traditional banks in SME

lending.

To support local social enterprises that

generate social and environmental impact.

To provide grants to local non-profit

organisations.

To invest only in environmentally focused

start-ups.

To maximise short-term financial returns

for private investors.

Which of the following factors is most likely to

drive the growing popularity of 'ESG Integration' in institutional investing

over 'Negative Screening'?

The preference for investing only in

companies producing renewable energy technologies.

The desire to completely avoid all exposure

to controversial industries, such as fossil fuels or tobacco.

The increasing evidence that companies with

high ESG ratings outperform their peers financially over the long term.

The belief that focusing on specific

sectors or industries based on environmental impact will lead to greater

short-term profits.

The complexity of measuring non-financial

performance, which makes it easier to exclude industries based on ESG criteria

alone.

What is the most likely outcome for a company

with a poor social reputation, particularly in terms of its labour practices?

Lower regulatory compliance costs due to

minimal reporting requirements.

Increased profitability due to lower labour

costs.

Improved employee retention and workforce

morale.

Reduced access to capital markets and credit

facilities.

Stronger relationships with socially

conscious investors.

ESG investing

typically involves the integration of sustainability criteria into investment

decisions. Which ESG investing strategy primarily focuses on selecting

companies with the highest ESG score regardless of sector or industry?