What Is Characteristic of the Lending Model of Crowdfunders

question 20

Multiple Choice

What is characteristic of the lending model of crowdfunders?

• 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.

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Definitions:

Dividends

Dividends refer to the distributions of a portion of a company's profits to its shareholders, made by the corporation.

Pledges Receivable

Commitments made by donors to give a specific amount of money to an organization over a set period, recognized as receivables in accounting.

Donation Revenue

Income received by a non-profit organization through voluntary financial contributions from individuals, corporations, or other entities.

Provision for Uncollectible Pledges

Provision for Uncollectible Pledges is a reserve or expense recognized by nonprofits or businesses for pledges or receivables that are likely not to be collected.