Describe and Explain Some of the Risks Mentioned in the Chapter

question 4

Essay

Describe and explain some of the risks mentioned in the chapter that should be considered before making a crowdfunding investment.

Distinguish between different types of crowds and their characteristics.

Critically evaluate the effectiveness and shortcomings of theories related to collective behavior and social movements.

Recognize the role of moral entrepreneurs in shaping societal norms and reactions.

Differentiate between fads, fashions, and social movements.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, providing voting rights and potentially a share in the company's profits through dividends.

Statement Of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, divided into operating, investing, and financing activities.

Operating Activities

Transactions and events that are directly related to the primary operations of a business, typically involving revenue and expense activities.

Investing Activities

Transactions involving the purchase or sale of long-term assets and other investments not considered cash equivalents, usually reflected in the cash flow statement of a company.