Question 1

Identify a project that could use crowdfunding and crowdsourcing.Identify the many opportunities that would benefit from these online sourcing and funding sources.

Accepted Answer

Answers will vary but should emphasize the many stages of product development that can benefit from crowdsourcing and funding.Answers may include finding design and product development support, manufacturing resources, and marketing advice.Partners may be identified and multiple relationships formed that can benefit the company later on.Engaging the audience will stimulate interest in the product and may help identify the first buyers.Manufacturing options might be found through sourcing, and costs of production can be reduced through outsourcing various parts of the manufacturing (or service).Funds can be raised for various stages of development under a variety of funding arrangements.

Question 2

Which site is specifically for nonprofits?

Accepted Answer

A) Kickstarter 
B) Peerbackers 
C) Crowdrise 
D) RocketHub 
A) Kickstarter 
B) Peerbackers 
C) Crowdrise 
D) RocketHub C

Question 3

What is the advantage of funding from an angel investor?

Accepted Answer

A) You may gain advice and guidance. 
B) You will not have to pay the investment. 
C) You will not be expected to use your own money toward your business. 
D) The funding is easy to attain. 
A) You may gain advice and guidance. 
B) You will not have to pay the investment. 
C) You will not be expected to use your own money toward your business. 
D) The funding is easy to attain. A

Question 4

What is the characteristic of the lending model of crowdfunders?

Accepted Answer

A) investors provide financial support with no expectation of direct return 
B) investors are rewarded for their financial support 
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 rewarded for their financial support 
C) equity is exchanged for the contribution 
D) funds are treated as loans

Question 5

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 6

What made equity crowdfunding possible?

Accepted Answer

A) the success of other crowdfunding sites 
B) the JOBS Act, signed by President Obama 
C) changes in Dow Jones 
D) advances in the software of crowdfunding sites 
A) the success of other crowdfunding sites 
B) the JOBS Act, signed by President Obama 
C) changes in Dow Jones 
D) advances in the software of crowdfunding sites

Question 7

Crowdfunding can best be described as:

Accepted Answer

A) obtaining funds from a group of investors 
B) obtaining funds from many people, who together form "the crowd" 
C) raising capital from a large audience, usually through the Internet 
D) a high-risk strategy to raise startup money 
A) obtaining funds from a group of investors 
B) obtaining funds from many people, who together form "the crowd" 
C) raising capital from a large audience, usually through the Internet 
D) a high-risk strategy to raise startup money

Question 8

Imagine that you have just written a book on urban farming.You need money in order to print and distribute your first printing.How would you use Internet-based resources for this purpose?

Accepted Answer

Both crowdfunding and crowdsourcing migh

Question 9

What was the source of funding for the launch of MorphCostumes?

Accepted Answer

A) angel investor 
B) venture capital funds 
C) the use of personal funds 
D) a bank loan 
A) angel investor 
B) venture capital funds 
C) the use of personal funds 
D) a bank loan

Question 10

According to the textbook, which is the most established crowdfunding site?

Accepted Answer

A) Kickstarter 
B) Quirky 
C) Indiegogo 
D) Rockethub 
A) Kickstarter 
B) Quirky 
C) Indiegogo 
D) Rockethub

Question 11

What is the typical profile of the crowdfunding backer?

Accepted Answer

A) retirees who enjoy the more direct form of investment 
B) young 24- to 35-year-olds who have an income over $100,000 a year 
C) 40- to 60-year-olds with incomes over $250,000 
D) millionaires looking to help the social good 
A) retirees who enjoy the more direct form of investment 
B) young 24- to 35-year-olds who have an income over $100,000 a year 
C) 40- to 60-year-olds with incomes over $250,000 
D) millionaires looking to help the social good

Question 12

What is the most effective reward to offer to Kickstart contributors?

Accepted Answer

A) a cash award 
B) awards-in-kind that offer equivalent value for the cash contributed 
C) offering the contributor to be the first to be able to purchase the product, along with a contribution award 
D) offering to list the person as a founding contributor on all product and service literature 
A) a cash award 
B) awards-in-kind that offer equivalent value for the cash contributed 
C) offering the contributor to be the first to be able to purchase the product, along with a contribution award 
D) offering to list the person as a founding contributor on all product and service literature

Question 13

Local Motors uses crowdsourcing in a unique way.How do they use it?

Accepted Answer

A) to obtain customer lists 
B) to obtain ideas for their new sports cars from their community of hobbyists, designers, and engineers 
C) to obtain ideas for their new sports cars from the general public 
D) to obtain users for pilot testing 
A) to obtain customer lists 
B) to obtain ideas for their new sports cars from their community of hobbyists, designers, and engineers 
C) to obtain ideas for their new sports cars from the general public 
D) to obtain users for pilot testing

Question 14

How much money can be raised through crowdfunding?

Accepted Answer

A) only small amounts, under $1,000 
B) small amounts, generally under $5,000 
C) as much money as can be raised through family and friends 
D) from small amounts to amounts in the millions of dollars 
A) only small amounts, under $1,000 
B) small amounts, generally under $5,000 
C) as much money as can be raised through family and friends 
D) from small amounts to amounts in the millions of dollars

Question 15

Of the following, what best describes the value of crowdfunding?

Accepted Answer

A) Projects are easy to conduct. 
B) There are various options to funds other than 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 various options to funds other than giving a part of the company away. 
C) It is relatively risk free. 
D) It is the easiest way to get worldwide recognition.

Question 16

What businesses can use crowdfunding?

Accepted Answer

A) mostly the arts, such as art, theater, and photography 
B) mostly high-tech startups 
C) mostly retail and real estate 
D) all these (and more) 
A) mostly the arts, such as art, theater, and photography 
B) mostly high-tech startups 
C) mostly retail and real estate 
D) all these (and more)

Question 17

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

Accepted Answer

A) They must create something to share with contributors. 
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 to return the money if the person changes his or her mind. 
A) They must create something to share with contributors. 
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 to return the money if the person changes his or her mind.

Question 18

Gerry is working on getting the description of his product down to two sentences.He also tries out his pitch with people who have not heard of his product before.What element of conducting a campaign is Gerry 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

Question 19

What are the "3 Fs"?

Accepted Answer

A) The three major sources of formal funding. 
B) A slang term meaning angel investors. 
C) Your circle of family, friends, and fools willing to help you with your initial startup. 
D) Free financial funding. 
A) The three major sources of formal funding. 
B) A slang term meaning angel investors. 
C) Your circle of family, friends, and fools willing to help you with your initial startup. 
D) Free financial funding.

Question 20

When someone states, "I don't have money to start a business," what fact might one 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.

Identify a project that could use crowdfunding and crowdsourcing.Identify the many opportunities that would benefit from these online sourcing and funding sources.

Which site is specifically for nonprofits?

What is the advantage of funding from an angel investor?

What is the characteristic of the lending model of crowdfunders?

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?

What made equity crowdfunding possible?

Crowdfunding can best be described as:

Imagine that you have just written a book on urban farming.You need money in order to print and distribute your first printing.How would you use Internet-based resources for this purpose?

What was the source of funding for the launch of MorphCostumes?

According to the textbook, which is the most established crowdfunding site?

What is the typical profile of the crowdfunding backer?

What is the most effective reward to offer to Kickstart contributors?

Local Motors uses crowdsourcing in a unique way.How do they use it?

How much money can be raised through crowdfunding?

Of the following, what best describes the value of crowdfunding?

What businesses can use crowdfunding?

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

Gerry is working on getting the description of his product down to two sentences.He also tries out his pitch with people who have not heard of his product before.What element of conducting a campaign is Gerry observing?

What are the "3 Fs"?

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

Entrepreneurship: a Global Social Movement

Practicing Entrepreneurship

Developing an Entrepreneurial Mindset

Supporting Social Entrepreneurship

Generating New Ideas

Using Design Thinking

Testing and Experimenting in Markets

Building Business Models

Planning for Entrepreneurs

Creating Revenue Models

Learning From Failure

Financing for Startups

Developing Networks

Navigating Legal and Ip Issues

Marketing and Pitching Your Idea

Financial Statements and Projections for Startups

the Pitch Deck

Filters

Exam 12: Bootstrapping for Resources

Identify a project that could use crowdfunding and crowdsourcing.Identify the many opportunities that would benefit from these online sourcing and funding sources.

Which site is specifically for nonprofits?

What is the advantage of funding from an angel investor?

What is the characteristic of the lending model of crowdfunders?

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?

What made equity crowdfunding possible?

Crowdfunding can best be described as:

Imagine that you have just written a book on urban farming.You need money in order to print and distribute your first printing.How would you use Internet-based resources for this purpose?

What was the source of funding for the launch of MorphCostumes?

According to the textbook, which is the most established crowdfunding site?

What is the typical profile of the crowdfunding backer?

What is the most effective reward to offer to Kickstart contributors?

Local Motors uses crowdsourcing in a unique way.How do they use it?

How much money can be raised through crowdfunding?

Of the following, what best describes the value of crowdfunding?

What businesses can use crowdfunding?

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

Gerry is working on getting the description of his product down to two sentences.He also tries out his pitch with people who have not heard of his product before.What element of conducting a campaign is Gerry observing?

What are the "3 Fs"?

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

Entrepreneurship: a Global Social Movement

Practicing Entrepreneurship

Developing an Entrepreneurial Mindset

Supporting Social Entrepreneurship

Generating New Ideas

Using Design Thinking

Testing and Experimenting in Markets

Building Business Models

Planning for Entrepreneurs

Creating Revenue Models

Learning From Failure

Financing for Startups

Developing Networks

Navigating Legal and Ip Issues

Marketing and Pitching Your Idea

Financial Statements and Projections for Startups

the Pitch Deck

Filters