What Businesses Can Use Crowdfunding

question 16

Multiple Choice

What businesses can use crowdfunding?

• A)mostly the arts, such as art, theater, and photography
• B)mostly high-tech startups
• C)mostly retail and real estate
• D)all these (and more)

---

Definitions:

Merger

The process by which two or more companies combine to form one entity, often with the intention of increasing competitive advantage or expanding market reach.

Purchase Method

The purchase method is an accounting approach used in mergers and acquisitions, where the assets and liabilities of the acquired company are consolidated at their fair market values.

Fair Market Value

The price at which an asset would exchange between a willing buyer and a willing seller, each having reasonable knowledge of the relevant facts, and neither being under any compulsion to buy or sell.

Goodwill

An intangible asset that arises when a buyer acquires an existing business, representing the premium paid over the fair market value of the identifiable assets and liabilities.