One of the Characteristics of Credit- or Loan-Based Crowdfunding Is

question 33

Multiple Choice

One of the characteristics of credit- or loan-based crowdfunding is:

• A) The funds do not need to be repaid.
• B) The loaned funds need to be repaid, but without any interest.
• C) The loans provide ownership to the investors.
• D) The platforms match lenders to small companies.

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Definitions:

Conservatism

An accounting principle that guides accountants to choose methods and assumptions that are least likely to overstate assets and income.

Distribution Costs

Expenses related to delivering goods from the manufacturer to the end consumer, including transportation and warehousing.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position at a specific time, showing assets, liabilities, and shareholders' equity.

Selling Price

The amount of money for which a product or service is sold to customers.