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There Are Two Types of Crowdfunding: Rewards-Based Crowdfunding and Debt

question 62

True/False

There are two types of crowdfunding: rewards-based crowdfunding and debt crowdfunding.


Definitions:

Debt Ratio

The proportion of a company's total debt to its total assets, indicating how much of the company's operations are financed by debt.

Equity Financing

A method of raising capital through the sale of shares in a company, providing investors ownership interests.

Debt Financing

The method of raising capital through the sale of bonds, notes, or loans, which must be repaid along with interest.

Marginal Cost

The cost of producing one additional unit of a product or service.

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