Match Each Definition That Follows with the Term (A-F) It

question 107

Multiple Choice

Match each definition that follows with the term (a-f) it defines.
-A formal means of analyzing long-range investment decisions

• A)Capital rationing
• B)Annuity
• C)Capital investment analysis
• D)Internal rate of return method
• E)Payback period
• F)Accounting rate of return

Recognize the importance of early and effective communication of product or service ideas to potential backers.

Understand the implications of rewards and equity sharing in crowdfunding campaigns and their effects on campaign approval and backer expectations.

Understand the differences between crowdfunding and crowdsourcing.

Identify the leading global crowdfunding platforms and their characteristics.

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Definitions:

Compound Interest

The addition of interest to the principal sum of a loan or deposit, where interest also earns interest from that moment on.

Earnings Rate

The return on an investment or the rate at which a company or asset generates income, typically expressed as a percentage.

Rate of Return

The profit or loss of an investment over a specified period, expressed as a percentage of the investment’s initial cost.

Present Value

The contemporary valuation of a future monetary sum or cash flow series, as determined by an agreed-upon rate of return.