Because Early-Stage Financing Is Almost Always a Problem for Those

question 252

Multiple Choice

Because early-stage financing is almost always a problem for those starting a new business, ________ is a way to gather an online community of supporters to financially rally around a specific project that is unlikely to get resources from traditional sources.

• A) crowdfunding
• B) open sourcing
• C) venture capital
• D) online banking
• E) crowdsourcing

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Definitions:

Pretax Income

The amount of income earned by an individual or corporation before taxes are deducted.

Benefits Principle

A taxation principle that states those who benefit from government services should pay in proportion to the amount they benefit.

Taxation

The system through which governments impose financial charges on citizens or corporates to fund public spending.

Tax Incidence

The study of the effect of a particular tax on the distribution of economic welfare, focusing on who ultimately pays the tax (the burden of the tax).