Question 1

Which crowdfunding platform focuses on science-related projects?

Accepted Answer

A)  RocketHub
B)  GoddardGroup
C)  OurCrowd
D)  Patreon

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.

Question 3

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.

Question 4

Which crowdfunding platform allows its patrons to fund illustrators,authors,podcasters,musicians,and other independent creators?

Accepted Answer

A)  RocketHub
B)  Crowdcube
C)  OurCrowd
D)  Patreon

Question 5

The process of raising capital for a new venture from a large audience,usually through the Internet,is called ______.

Accepted Answer

A)  crowdfunding
B)  penny pinching
C)  crowdsourcing
D)  bootstrapping A

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

Crowdfunding is a resource for ______.

Accepted Answer

A)  talent
B)  intellectual property
C)  money
D)  labor

Question 9

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 10

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

Accepted Answer

A)  information
B)  financial
C)  technological
D)  social media

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

If you cannot convey your product or service idea to your audience of prospective financial backers in a few short sentences,you should ______.

Accepted Answer

A)  provide everyone with a detailed business plan document.
B)  abandon your product or service idea.
C)  spend time getting a clearer sense of the essence of your product.
D)  remind your audience that they are missing out on a unique opportunity.

Question 13

When should you begin broadcasting your product to attract an audience?

Accepted Answer

A)  when your product is ready to ship
B)  when your product is in production
C)  when you have your first working prototype
D)  now

Question 14

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 B

Question 15

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 16

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

Accepted Answer

A)  25%
B)  40%
C)  60%
D)  75%

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Crowdfunding entrepreneurs should set a funding target that is ______.

Accepted Answer

A)  aggressive to signal confidence in the product or service for potential investors.
B)  low and easy to outperform in order to generate buzz around the product or service.
C)  realistic enough to attract backers but high enough to cover costs.
D)  as high as possible to generate as much initial cash as possible to infuse into the business. C

Question 19

Equity crowdfunding is increasing in popularity all over the world.

Accepted Answer

A) True 
 B)False

Question 20

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 grants

Exam 12: Bootstrapping and Crowdfunding for Resources

Which crowdfunding platform focuses on science-related projects?

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

What is characteristic of the lending model of crowdfunders?

Correct AnswerverifiedShow Answer

Which crowdfunding platform allows its patrons to fund illustrators,authors,podcasters,musicians,and other independent creators?

Correct AnswerverifiedShow Answer

The process of raising capital for a new venture from a large audience,usually through the Internet,is called ______.

Correct AnswerverifiedA

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Crowdfunding is a resource for ______.

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If you cannot convey your product or service idea to your audience of prospective financial backers in a few short sentences,you should ______.

Correct AnswerverifiedShow Answer

When should you begin broadcasting your product to attract an audience?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedB

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Crowdfunding entrepreneurs should set a funding target that is ______.

Correct AnswerverifiedC

Equity crowdfunding is increasing in popularity all over the world.

Correct AnswerverifiedShow Answer

How does Kickstarter get its money?

Correct AnswerverifiedShow Answer

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

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