Question 1

Lorraine offers to give people a percentage of the profits earned from her theater production as a reward for donating $100 to the production's equipment.Kickstarter did not approve her campaign because:

Accepted Answer

A)  it was a theater production and not a product
B)  she wanted to offer a financial reward
C)  she was asking too much of an investment, given the reward
D)  she was asking too little of an investment, given the reward

Question 2

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.

Question 3

You would like to raise funds for a foodbank in your local community.Kickstarter would be an excellent source for the initial funds.

Accepted Answer

A) True 
 B)False

Question 4

Quirky is a site that helps investors raise funds.

Accepted Answer

A) True 
 B)False

Question 5

Why is crowdfunding a growing choice for entrepreneurs?

Accepted Answer

A)  Connecting with people through the Internet demonstrates tech-savviness to later investors
B)  Banks and investors are growing more cautious, so crowdfunding is a more viable option.
C)  All types of entrepreneurs can receive backing to start their own business.
D)  Young investors tend to be more willing to invest.

Question 6

What was the primary benefit Local Motors gained from outsourcing manufacturing and design?

Accepted Answer

A)  They rapidly increased the number of employees working for the company.
B)  They raised money quickly to fund their development.
C)  They saved labor costs while improving efficiency.
D)  They were able to employ 3D design software.

Question 7

Who generally funds the site when crowdsourcing for medical information?

Accepted Answer

A)  patients who want to benefit from future medical treatment
B)  the potential medical provider (e.g., pharmaceutical companies) 
C)  third-party backers
D)  no funding is required

Question 8

One of the problems with the Coolest Cooler was that:

Accepted Answer

A)  the USB charger caused electric shocks to several customers
B)  shipping was too expensive for more customers
C)  supporters lost faith over delayed production
D)  they crowdfunded on multiple sites, betraying community guidelines

Question 9

Jose starts 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

Question 10

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

Accepted Answer

A)  formal fundraising
B)  bootstrapping
C)  angel funding
D)  none of these

Question 11

Which of the following crowdfunding sites would be best if raising money for a new invention?

Accepted Answer

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

Question 12

SuLin is setting up a small construction shop and uses his personal credit card to purchase the company's basic equipment.This process is referred to as which of the following:

Accepted Answer

A)  venture capital
B)  credit
C)  external funding
D)  bootstrapping

Question 13

Which of the following is NOT a crowdfunding mistake?

Accepted Answer

A)  setting a realistic funding goal
B)  having no, or little, social media presence
C)  failure to deliver the product or rewards after the campaign is over
D)  choosing the wrong crowdfunding platform

Question 14

In addition to raising funds in a given period of time, what else is required in a Kickstarter project?

Accepted Answer

A)  The project must be available on a global basis since contributors can come from anywhere.
B)  Participants must subject themselves to a background check.
C)  A specific fundraising goal must be set and met within the time period allowed.
D)  They must create a video demonstrating or talking about their project.

Question 15

Which of the following would be considered an acceptable penny-pinching strategy?

Accepted Answer

A)  hire employees but don't pay them
B)  pay yourself a salary
C)  attend networking events to get connections
D)  give up your day job so that you can focus full time on the business

Question 16

It is important to be conservative in setting the financial goal in a crowdfunding campaign.

Accepted Answer

A) True 
 B)False

Question 17

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)  people who contribute support in a crowdfunding venture
C)  the site on which crowdfunding ventures occur
D)  the financial institution that manages the transfer of money

Question 18

What percentage of Kickstarter projects have been successful?

Accepted Answer

A)  28%
B)  48%
C)  68%
D)  78%

Question 19

What does the term digital printing mean?

Accepted Answer

A)  a method of using a software-created digital image to directly form the image in a variety of media
B)  any use of software to create a 3D image
C)  any printing from a software design program
D)  a form of printing using small dots to create the image

Question 20

Which of the following is an advantage of bootstrapping and starting slowly?

Accepted Answer

A)  The business will grow faster without interference from venture capitalists.
B)  You are more likely to build a larger customer base due to a slower start.
C)  You will not spend personal funds.
D)  You will avoid risk.

Exam 12: Bootstrapping for Resources

In addition to raising funds in a given period of time, what else is required in a Kickstarter project?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Lorraine offers to give people a percentage of the profits earned from her theater production as a reward for donating $100 to the production's equipment.Kickstarter did not approve her campaign because:

Correct AnswerverifiedShow Answer

Who generally funds the site when crowdsourcing for medical information?

Correct AnswerverifiedShow Answer

SuLin is setting up a small construction shop and uses his personal credit card to purchase the company's basic equipment.This process is referred to as which of the following:

Correct AnswerverifiedShow Answer

What percentage of Kickstarter projects have been successful?

Correct AnswerverifiedShow Answer

You would like to raise funds for a foodbank in your local community.Kickstarter would be an excellent source for the initial funds.

Correct AnswerverifiedShow Answer

Jose starts 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?

Correct AnswerverifiedShow Answer

Which of the following crowdfunding sites would be best if raising money for a new invention?

Correct AnswerverifiedShow Answer

Why is crowdfunding a growing choice for entrepreneurs?

Correct AnswerverifiedShow Answer

In reference to crowdfunding, a backer is best described as:

Correct AnswerverifiedShow Answer

What was the primary benefit Local Motors gained from outsourcing manufacturing and design?

Correct AnswerverifiedShow Answer

Quirky is a site that helps investors raise funds.

Correct AnswerverifiedShow Answer

How does equity crowdfunding differ from other types of crowdfunding?

Correct AnswerverifiedShow Answer

Which of the following is NOT a crowdfunding mistake?

Correct AnswerverifiedShow Answer

Which of the following is an advantage of bootstrapping and starting slowly?

Correct AnswerverifiedShow Answer

Which of the following would be considered an acceptable penny-pinching strategy?

Correct AnswerverifiedShow Answer

One of the problems with the Coolest Cooler was that:

Correct AnswerverifiedShow Answer

What does the term digital printing mean?

Correct AnswerverifiedShow Answer

It is important to be conservative in setting the financial goal in a crowdfunding campaign.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified