Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Thanks to the Internet,the likelihood of a new business getting formal investment is pretty good.

Accepted Answer

A) True 
 B)False

Question 3

Crowdsourcing is a bootstrapping method that saves money while obtaining valuable ______ resources.

Accepted Answer

A)  information
B)  financial
C)  technological
D)  social mediaE) B) and D)
F) C) and D)

Question 4

Imagine that you have developed a software application and are now ready to "open shop." Describe some of the penny-pinching techniques you would use to get your business started.

Accepted Answer

Avoid taking a salary,reimburs...

Question 5

What is characteristic of the patronage 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.E) None of the above
F) A) and C)

Question 6

How does Kickstarter get its money?

Accepted Answer

A)  by charging a percentage of the funds obtained from each successful project
B)  by charging members a modest fee for posting their request
C)  by using crowdfunding themselves
D)  by listing themselves as a nonprofit and getting grantsE) B) and D)
F) All of the above

Question 7

Indiegogo is the largest global crowdfunding site in the world.

Accepted Answer

A) True 
 B)False

Question 8

When conducting a crowdfunding campaign,why is it important to talk to others who have used crowdfunding?

Accepted Answer

A)  You will get a better idea of what to do and what to avoid in your campaign.
B)  You can engage them in your own campaign.
C)  You can gain valuable information about their product or service.
D)  They may want to buy your business.E) All of the above
F) A) and B)

Question 9

Crowdfunding is a resource for talent and labor,and crowdsourcing is a resource for money.

Accepted Answer

A) True 
 B)False

Question 10

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 moneyE) B) and D)
F) A) and D)

Question 11

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.E) A) and D)
F) A) and C)

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.) .E) A) and B)
F) C) and D)

Question 13

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 fundingE) A) and C)
F) A) and B)

Question 14

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 opportunitiesE) None of the above
F) A) and B)

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

When setting a funding goal,focus on how much money you would like to have rather than on how much you will need.

Accepted Answer

A) True 
 B)False

Question 17

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 dollarsE) A) and D)
F) None of the above

Question 18

Greg is using a fundraiser site and is offering 10 shares of stock to those who contribute a minimum of $100 to his product.What model of crowdfunding is Greg using?

Accepted Answer

A)  investor
B)  patronage
C)  reward
D)  lendingE) C) and D)
F) All of the above

Question 19

Most entrepreneurs choose to seek out angel investors or other external investors in the beginning.

Accepted Answer

A) True 
 B)False

Question 20

Research has shown that what percentage of crowdfunded products are delivered later than expected?

Accepted Answer

A)  25%
B)  40%
C)  60%
D)  75%E) None of the above
F) All of the above

Exam 12: Bootstrapping and Crowdfunding for Resources

How much money can be raised through crowdfunding?

Correct AnswerverifiedShow Answer

Imagine that you have developed a software application and are now ready to "open shop." Describe some of the penny-pinching techniques you would use to get your business started.

Correct AnswerverifiedAvoid taking a salary,reimburs...View AnswerShow Answer

Most entrepreneurs choose to seek out angel investors or other external investors in the beginning.

Correct AnswerverifiedShow Answer

Greg is using a fundraiser site and is offering 10 shares of stock to those who contribute a minimum of $100 to his product.What model of crowdfunding is Greg using?

Correct AnswerverifiedShow Answer

How does Kickstarter get its money?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Thanks to the Internet,the likelihood of a new business getting formal investment is pretty good.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When conducting a crowdfunding campaign,why is it important to talk to others who have used crowdfunding?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Crowdfunding is a resource for talent and labor,and crowdsourcing is a resource for money.

Correct AnswerverifiedShow Answer

Crowdsourcing is a bootstrapping method that saves money while obtaining valuable ______ resources.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

When setting a funding goal,focus on how much money you would like to have rather than on how much you will need.

Correct AnswerverifiedShow Answer

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 ______.

Correct AnswerverifiedShow Answer

Research has shown that what percentage of crowdfunded products are delivered later than expected?

Correct AnswerverifiedShow Answer

What is characteristic of the patronage model of crowdfunders?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Indiegogo is the largest global crowdfunding site in the world.

Correct AnswerverifiedShow Answer

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Avoid taking a salary,reimburs...
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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 .

Correct Answer
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