Question 1

What is characteristic of the lending 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. D

Question 2

Kevin is about to launch a crowdfunding campaign and posts a request on his Facebook page,asking people to share their experiences on crowdfunding sites.What element of conducting a campaign is Kevin observing?

Accepted Answer

A) Set the right fundraising goal. 
B) Practice the pitch. 
C) Seek and accept advice. 
D) Get the campaign started. 
A) Set the right fundraising goal. 
B) Practice the pitch. 
C) Seek and accept advice. 
D) Get the campaign started. C

Question 3

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

Accepted Answer

A) True 
 B)False  False

Question 4

Crowdfunding can help you save money on marketing because it provides ______.

Accepted Answer

A) customer service automation 
B) your customers with a free sample of your product 
C) you with an idea of the level of interest in your product 
D) free access to mailing lists 
A) customer service automation 
B) your customers with a free sample of your product 
C) you with an idea of the level of interest in your product 
D) free access to mailing lists

Question 5

John is raising money on a crowdfunding site,and in return for contributions,offers to let the contributor purchase prelaunch product.John is using a patronage model of crowdfunding.

Accepted Answer

A) True 
 B)False

Question 6

There is no time limit for trying to raise funds through Kickstarter.

Accepted Answer

A) True 
 B)False

Question 7

When seeking advice from other crowdfunders,focus on those who have been successful; there's little to learn from those who failed.

Accepted Answer

A) True 
 B)False

Question 8

The first step entrepreneurs should take before starting a crowdfunding campaign is to begin manufacturing the product.

Accepted Answer

A) True 
 B)False

Question 9

According to the 2012 American Dream Composite Index,______ tend to be between the ages of 24 and 35,are more likely to be men,and to have an income of over $100,000 per year.

Accepted Answer

A) bootstrappers 
B) crowdsourcing participants 
C) angel investors 
D) crowdfunding backers 
A) bootstrappers 
B) crowdsourcing participants 
C) angel investors 
D) crowdfunding backers

Question 10

According to the text,small companies and individuals may choose to manufacture prototypes in China because Chinese factories can manufacture in ______ batches at ______ costs.

Accepted Answer

A) multiple; moderate 
B) small; low 
C) frequent; high 
D) large; low 
A) multiple; moderate 
B) small; low 
C) frequent; high 
D) large; low

Question 11

Crowdfunding offers the advantage of giving you an idea of the level of enthusiasm and interest in your product or service before you even launch.

Accepted Answer

A) True 
 B)False

Question 12

Select a product that you might want to fund on Kickstarter.Explain the steps you would take to make sure that your campaign fulfills the requirements of the Kickstarter site.

Accepted Answer

The product should be in line with the t

Question 13

Crowdfunding and crowdsourcing would both be considered which of the following strategies?

Accepted Answer

A) formal fundraising 
B) bootstrapping 
C) angel investing 
D) penny pinching 
A) formal fundraising 
B) bootstrapping 
C) angel investing 
D) penny pinching

Question 14

What is the name given to the process of building a business with very little,or no,funding?

Accepted Answer

A) seed startup 
B) bootstrapping 
C) zero funding 
D) skeleton funding 
A) seed startup 
B) bootstrapping 
C) zero funding 
D) skeleton funding

Question 15

According to the text,in the crowdfunding model,the ______ is everything.

Accepted Answer

A) formal proposal 
B) video pitch 
C) written description 
D) sales pitch 
A) formal proposal 
B) video pitch 
C) written description 
D) sales pitch

Question 16

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 17

What must be offered by someone who uses Kickstarter for a fundraising project?

Accepted Answer

A) They must create something to share with others. 
B) They must offer to return the exact amount of the contributed funds within a given period of time. 
C) They must offer to give a portion of their funds to a charity. 
D) They must offer a moneyback guarantee if a backer decides to rescind his or her contribution. 
A) They must create something to share with others. 
B) They must offer to return the exact amount of the contributed funds within a given period of time. 
C) They must offer to give a portion of their funds to a charity. 
D) They must offer a moneyback guarantee if a backer decides to rescind his or her contribution.

Question 18

Crowdsourcing is a resource for ______.

Accepted Answer

A) money 
B) investors 
C) physical capital 
D) labor and talent 
A) money 
B) investors 
C) physical capital 
D) labor and talent

Question 19

As discussed in the text,Crowdfunder,AngelList,Fundable,and Circle Up are examples of sites that ______.

Accepted Answer

A) allow funding requests under $1,000 
B) allow funding requests over $5 million 
C) give backers the opportunity to invest in exchange for ownership or future returns 
D) do not allow companies to offer equity as a reward 
A) allow funding requests under $1,000 
B) allow funding requests over $5 million 
C) give backers the opportunity to invest in exchange for ownership or future returns 
D) do not allow companies to offer equity as a reward

Question 20

Crowdfunding has been used to raise billions of dollars for all kinds of industries.

Accepted Answer

A) True 
 B)False

What is characteristic of the lending model of crowdfunders?

Kevin is about to launch a crowdfunding campaign and posts a request on his Facebook page,asking people to share their experiences on crowdfunding sites.What element of conducting a campaign is Kevin observing?

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

Crowdfunding can help you save money on marketing because it provides ______.

John is raising money on a crowdfunding site,and in return for contributions,offers to let the contributor purchase prelaunch product.John is using a patronage model of crowdfunding.

There is no time limit for trying to raise funds through Kickstarter.

When seeking advice from other crowdfunders,focus on those who have been successful; there's little to learn from those who failed.

The first step entrepreneurs should take before starting a crowdfunding campaign is to begin manufacturing the product.

According to the 2012 American Dream Composite Index,______ tend to be between the ages of 24 and 35,are more likely to be men,and to have an income of over $100,000 per year.

According to the text,small companies and individuals may choose to manufacture prototypes in China because Chinese factories can manufacture in batches at costs.

Crowdfunding offers the advantage of giving you an idea of the level of enthusiasm and interest in your product or service before you even launch.

Select a product that you might want to fund on Kickstarter.Explain the steps you would take to make sure that your campaign fulfills the requirements of the Kickstarter site.

Crowdfunding and crowdsourcing would both be considered which of the following strategies?

What is the name given to the process of building a business with very little,or no,funding?

According to the text,in the crowdfunding model,the ______ is everything.

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

What must be offered by someone who uses Kickstarter for a fundraising project?

Crowdsourcing is a resource for ______.

As discussed in the text,Crowdfunder,AngelList,Fundable,and Circle Up are examples of sites that ______.

Crowdfunding has been used to raise billions of dollars for all kinds of industries.

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

Supplement A: Financial Statements and Projections for Startups

Developing Networks and Building Teams

Supplement B: the Pitch Deck

Creating Revenue Models

Planning for Entrepreneurs

Anticipating Failure

Financing for Startups

Navigating Legal and Ip Issues

Engaging Customers Through Marketing

Supporting Social Entrepreneurship

Filters

Exam 12: Bootstrapping and Crowdfunding for Resources

What is characteristic of the lending model of crowdfunders?

Kevin is about to launch a crowdfunding campaign and posts a request on his Facebook page,asking people to share their experiences on crowdfunding sites.What element of conducting a campaign is Kevin observing?

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

Crowdfunding can help you save money on marketing because it provides ______.

John is raising money on a crowdfunding site,and in return for contributions,offers to let the contributor purchase prelaunch product.John is using a patronage model of crowdfunding.

There is no time limit for trying to raise funds through Kickstarter.

When seeking advice from other crowdfunders,focus on those who have been successful; there's little to learn from those who failed.

The first step entrepreneurs should take before starting a crowdfunding campaign is to begin manufacturing the product.

According to the 2012 American Dream Composite Index,______ tend to be between the ages of 24 and 35,are more likely to be men,and to have an income of over $100,000 per year.

According to the text,small companies and individuals may choose to manufacture prototypes in China because Chinese factories can manufacture in ______ batches at ______ costs.

Crowdfunding offers the advantage of giving you an idea of the level of enthusiasm and interest in your product or service before you even launch.

Select a product that you might want to fund on Kickstarter.Explain the steps you would take to make sure that your campaign fulfills the requirements of the Kickstarter site.

Crowdfunding and crowdsourcing would both be considered which of the following strategies?

What is the name given to the process of building a business with very little,or no,funding?

According to the text,in the crowdfunding model,the ______ is everything.

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

What must be offered by someone who uses Kickstarter for a fundraising project?

Crowdsourcing is a resource for ______.

As discussed in the text,Crowdfunder,AngelList,Fundable,and Circle Up are examples of sites that ______.

Crowdfunding has been used to raise billions of dollars for all kinds of industries.

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

Supplement A: Financial Statements and Projections for Startups

Developing Networks and Building Teams

Supplement B: the Pitch Deck

Creating Revenue Models

Planning for Entrepreneurs

Anticipating Failure

Financing for Startups

Navigating Legal and Ip Issues

Engaging Customers Through Marketing

Supporting Social Entrepreneurship

Filters

According to the text,small companies and individuals may choose to manufacture prototypes in China because Chinese factories can manufacture in batches at costs.