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Introduction to Crowdfunding

Total questions: 8

Worksheet time: 3mins

Name
Class
Date
1.

Which of the following is NOT a form of crowdfunding?

a)

Rewards

b)

Loan

c)

Equity

d)

Informational

e)

Charitable

2.

What do backers ALWAYS get in return for backing a company doing equity crowdfunding?

a)

Tax deduction

b)

A product, tickets to a show, or other tangible rewards

c)

Shares in the company

d)

Personal thank-you

e)

All of the above

3.

Why might someone use or turn to crowdfunding?

a)

To launch a new company

b)

To fund a project that they want to complete

c)

To advance their personal career

d)

All of the above

4.

The largest single source of funding for most reward-crowdfunding campaigns is:

a)

Professional investors

b)

Strangers

c)

Community

d)

Family and friends

5.

Of the following projects, assuming they are similar in every other way, which of is most likely to succeed?

a)

A project pitched at a community in which the creator is a respected member

b)

A project pitched at a community the creator is a peripheral member

c)

A project pitched at a community that is not clearly defined

d)

A project pitched at a community in which the creator has done extensive research, but is not an active part

6.

What types of crowdfunding do Indiegogo and pitchIN support?

a)

Equity crowdfunding only

b)

Reward crowdfunding only

c)

Reward and loan crowdfunding

d)

Reward and equity crowdfunding

7.

What type of crowdfunding is GoFundMe?

a)

Charitable

b)

Reward

c)

Patronage

d)

Loan

8.

What is a downside to raising money from friends and family?

a)

Friends don't care if you succeed

b)

It can be a large emotional investment

c)

Friends have to be paid back if your project fails

d)

It is illegal