Question 1

Which of the following accurately describes a major advantage to crowdfunding?

Accepted Answer

A) Projects are easy to conduct. 
B) There are different options in getting funded,aside from giving a part of the company away. 
C) It is relatively risk free. 
D) It is the easiest way to get worldwide recognition. 
A) Projects are easy to conduct. 
B) There are different options in getting funded,aside from giving a part of the company away. 
C) It is relatively risk free. 
D) It is the easiest way to get worldwide recognition.

Question 2

Research has shown that the majority of crowdfunded projects are delivered later than expected.

Accepted Answer

A) True 
 B)False

Question 3

Wikihouse freely provides user-submitted blueprints for anyone who wishes to build an affordable custom-built house with 3D printing.This is an example of ______ because ______.

Accepted Answer

A) crowdsourcing; it uses the expertise of the crowd to greatly reduce the cost of design and construction 
B) crowdfunding; it uses the Internet to quickly generate a large user base for Wikihouse 
C) bootstrapping; it allows amateur designers an opportunity to disrupt the construction business 
D) Wikifunding; it uses the open-source Wikipedia platform to generate new solutions and opportunities 
A) crowdsourcing; it uses the expertise of the crowd to greatly reduce the cost of design and construction 
B) crowdfunding; it uses the Internet to quickly generate a large user base for Wikihouse 
C) bootstrapping; it allows amateur designers an opportunity to disrupt the construction business 
D) Wikifunding; it uses the open-source Wikipedia platform to generate new solutions and opportunities

Question 4

Using the Internet to attract,aggregate,and manage ostensibly inexpensive or even free labor from enthusiastic customers and like-minded people is called ______.

Accepted Answer

A) crowdfunding 
B) penny pinching 
C) crowdsourcing 
D) bootstrapping 
A) crowdfunding 
B) penny pinching 
C) crowdsourcing 
D) bootstrapping

Question 5

Crowdfunding backers invest solely on the merits of a product rather than their impression of the entrepreneur involved with the product.

Accepted Answer

A) True 
 B)False

Question 6

Hard work an entrepreneur personally puts in to get a business up and running is known as ______.

Accepted Answer

A) penny pinching 
B) bootstrapping 
C) sweat equity 
D) affordable loss 
A) penny pinching 
B) bootstrapping 
C) sweat equity 
D) affordable loss

Question 7

Jose is opening a small restaurant.On weekends,he works with his cousin to construct the tables,chairs,and counters that will go into the restaurant.What is the name given to the result of these efforts?

Accepted Answer

A) labor equity 
B) owner labor 
C) sweat equity 
D) family ownership 
A) labor equity 
B) owner labor 
C) sweat equity 
D) family ownership

Question 8

When someone states,"I don't have money to start a business," what fact might you tell them to consider?

Accepted Answer

A) Most businesses start without any formal investment. 
B) This is a valid reason for not starting a business. 
C) Formal investment will be needed to make a successful company. 
D) People who have no money cannot start a business. 
A) Most businesses start without any formal investment. 
B) This is a valid reason for not starting a business. 
C) Formal investment will be needed to make a successful company. 
D) People who have no money cannot start a business.

Question 9

What is characteristic of the reward model of crowdfunders?

Accepted Answer

A) Investors provide financial support with no expectation of direct return. 
B) Investors are given prizes for their financial support,such as product samples or experiences. 
C) Equity is exchanged for the contribution. 
D) Funds are treated as loans. 
A) Investors provide financial support with no expectation of direct return. 
B) Investors are given prizes for their financial support,such as product samples or experiences. 
C) Equity is exchanged for the contribution. 
D) Funds are treated as loans.

Question 10

If you choose the right bootstrapping strategy,you can likely avoid having to invest sweat equity.

Accepted Answer

A) True 
 B)False

Question 11

In reference to crowdfunding,a backer is best described as ______.

Accepted Answer

A) a person who will pay back a loan if you fail to do so 
B) a person who contributes support in a crowdfunding venture 
C) a financial institution that lends money to a startup 
D) the financial institution that manages the transfer of money 
A) a person who will pay back a loan if you fail to do so 
B) a person who contributes support in a crowdfunding venture 
C) a financial institution that lends money to a startup 
D) the financial institution that manages the transfer of money

Question 12

If you have a successfully crowdfunded product and you know you are going to miss your advertised ship date,what should you do?

Accepted Answer

A) Do nothing. 
B) Change the date on your crowdfunding site but do not draw attention to it. 
C) Be honest; alert your backers and notify others through the crowdfunding site. 
D) Shift the blame to someone else (manufacturers,distributors,suppliers,etc.). 
A) Do nothing. 
B) Change the date on your crowdfunding site but do not draw attention to it. 
C) Be honest; alert your backers and notify others through the crowdfunding site. 
D) Shift the blame to someone else (manufacturers,distributors,suppliers,etc.).

Question 13

Compare the investor model of crowdfunding with the lending model.What are the advantages and disadvantages of each for the entrepreneur?

Accepted Answer

The amount contributed will be considere

Question 14

Seth starts his company with computers that he found on craigslist.com and some office furniture from the basement of his parents' home.This strategy would be considered which of the following?

Accepted Answer

A) startup 
B) sweat equity 
C) penny pinching 
D) zero-based funding 
A) startup 
B) sweat equity 
C) penny pinching 
D) zero-based funding

Question 15

Imagine that you have developed a software application and want to raise money for legal advice,filing initial business and regulatory forms,and funding your travel and marketing expenses.Describe how you would fund these early efforts.

Accepted Answer

The answer should first exhaust traditio

Question 16

How does equity crowdfunding differ from other types of crowdfunding?

Accepted Answer

A) Investors are given the opportunity to become company shareholders. 
B) Funds are raised from a community of angel and venture capitalists. 
C) Funds are provided by the government. 
D) Financial institutions are allowed to raise funds on these sites. 
A) Investors are given the opportunity to become company shareholders. 
B) Funds are raised from a community of angel and venture capitalists. 
C) Funds are provided by the government. 
D) Financial institutions are allowed to raise funds on these sites.

Question 17

What happens on Kickstarter if the funds are not raised in the given amount of time?

Accepted Answer

A) The project is automatically extended for another 30 days. 
B) The project owner can keep the money raised up to the end of the period. 
C) The project owner can transfer funds earned to a project of his or her choice. 
D) The money is not earned and no money will be received. 
A) The project is automatically extended for another 30 days. 
B) The project owner can keep the money raised up to the end of the period. 
C) The project owner can transfer funds earned to a project of his or her choice. 
D) The money is not earned and no money will be received.

Question 18

Which of the following could not be offered in a Kickstarter campaign?

Accepted Answer

A) a free product or product sample 
B) participation in a cash award raffle 
C) presale delivery of the product or service 
D) free tickets to a play 
A) a free product or product sample 
B) participation in a cash award raffle 
C) presale delivery of the product or service 
D) free tickets to a play

Question 19

Bootstrapping and starting slowly enables entrepreneurs to avoid any and all risk.

Accepted Answer

A) True 
 B)False

Question 20

Wikipedia encouraging its users to edit and update its free online encyclopedia is an example of ______.

Accepted Answer

A) patronage 
B) equity 
C) crowdfunding 
D) crowdsourcing 
A) patronage 
B) equity 
C) crowdfunding 
D) crowdsourcing

Which of the following accurately describes a major advantage to crowdfunding?

Research has shown that the majority of crowdfunded projects are delivered later than expected.

Wikihouse freely provides user-submitted blueprints for anyone who wishes to build an affordable custom-built house with 3D printing.This is an example of because .

Using the Internet to attract,aggregate,and manage ostensibly inexpensive or even free labor from enthusiastic customers and like-minded people is called ______.

Crowdfunding backers invest solely on the merits of a product rather than their impression of the entrepreneur involved with the product.

Hard work an entrepreneur personally puts in to get a business up and running is known as ______.

Jose is opening a small restaurant.On weekends,he works with his cousin to construct the tables,chairs,and counters that will go into the restaurant.What is the name given to the result of these efforts?

When someone states,"I don't have money to start a business," what fact might you tell them to consider?

What is characteristic of the reward model of crowdfunders?

If you choose the right bootstrapping strategy,you can likely avoid having to invest sweat equity.

In reference to crowdfunding,a backer is best described as ______.

If you have a successfully crowdfunded product and you know you are going to miss your advertised ship date,what should you do?

Compare the investor model of crowdfunding with the lending model.What are the advantages and disadvantages of each for the entrepreneur?

Seth starts his company with computers that he found on craigslist.com and some office furniture from the basement of his parents' home.This strategy would be considered which of the following?

Imagine that you have developed a software application and want to raise money for legal advice,filing initial business and regulatory forms,and funding your travel and marketing expenses.Describe how you would fund these early efforts.

How does equity crowdfunding differ from other types of crowdfunding?

What happens on Kickstarter if the funds are not raised in the given amount of time?

Which of the following could not be offered in a Kickstarter campaign?

Bootstrapping and starting slowly enables entrepreneurs to avoid any and all risk.

Wikipedia encouraging its users to edit and update its free online encyclopedia is an example of ______.

Practicing Entrepreneurship

Activating an Entrepreneurial Mindset

Creating and Recognizing New Opportunities

Using Design Thinking

Building Business Models

Developing Your Customers

Testing and Experimenting With New Ideas

Developing Networks and Building Teams

Creating Revenue Models

Planning for Entrepreneurs

Anticipating Failure

Financing for Startups

Navigating Legal and Ip Issues

Engaging Customers Through Marketing

Supporting Social Entrepreneurship

Financial Statements and Projections for Startups

The Pitch Deck

Filters

Exam 12: Bootstrapping and Crowdfunding for Resources

Which of the following accurately describes a major advantage to crowdfunding?

Research has shown that the majority of crowdfunded projects are delivered later than expected.

Wikihouse freely provides user-submitted blueprints for anyone who wishes to build an affordable custom-built house with 3D printing.This is an example of ______ because ______.

Using the Internet to attract,aggregate,and manage ostensibly inexpensive or even free labor from enthusiastic customers and like-minded people is called ______.

Crowdfunding backers invest solely on the merits of a product rather than their impression of the entrepreneur involved with the product.

Hard work an entrepreneur personally puts in to get a business up and running is known as ______.

Jose is opening a small restaurant.On weekends,he works with his cousin to construct the tables,chairs,and counters that will go into the restaurant.What is the name given to the result of these efforts?

When someone states,"I don't have money to start a business," what fact might you tell them to consider?

What is characteristic of the reward model of crowdfunders?

If you choose the right bootstrapping strategy,you can likely avoid having to invest sweat equity.

In reference to crowdfunding,a backer is best described as ______.

If you have a successfully crowdfunded product and you know you are going to miss your advertised ship date,what should you do?

Compare the investor model of crowdfunding with the lending model.What are the advantages and disadvantages of each for the entrepreneur?

Seth starts his company with computers that he found on craigslist.com and some office furniture from the basement of his parents' home.This strategy would be considered which of the following?

Imagine that you have developed a software application and want to raise money for legal advice,filing initial business and regulatory forms,and funding your travel and marketing expenses.Describe how you would fund these early efforts.

How does equity crowdfunding differ from other types of crowdfunding?

What happens on Kickstarter if the funds are not raised in the given amount of time?

Which of the following could not be offered in a Kickstarter campaign?

Bootstrapping and starting slowly enables entrepreneurs to avoid any and all risk.

Wikipedia encouraging its users to edit and update its free online encyclopedia is an example of ______.

Practicing Entrepreneurship

Activating an Entrepreneurial Mindset

Creating and Recognizing New Opportunities

Using Design Thinking

Building Business Models

Developing Your Customers

Testing and Experimenting With New Ideas

Developing Networks and Building Teams

Creating Revenue Models

Planning for Entrepreneurs

Anticipating Failure

Financing for Startups

Navigating Legal and Ip Issues

Engaging Customers Through Marketing

Supporting Social Entrepreneurship

Financial Statements and Projections for Startups

The Pitch Deck

Filters

Wikihouse freely provides user-submitted blueprints for anyone who wishes to build an affordable custom-built house with 3D printing.This is an example of because .