Since Crowd Funding Sites Do Not Themselves Invest in Business

question 88

Multiple Choice

Since crowd funding sites do not themselves invest in business start ups that raise funds on their sites, they don't reduce:

• A)the principal-agent problem
• B)information costs
• C)transaction costs
• D)asymmetric information

---

Definitions:

Full House

A term used in both real estate, to indicate a fully occupied building, and in poker, to describe a hand containing three cards of one rank and two of another.

Ticket Prices

the cost assigned to purchasing a ticket for an event, such as a movie, concert, or sporting event.

Price Inelastic

A description of a good or service's demand when its quantity demanded is relatively insensitive to changes in its price.

Baseball Cards

Collectible items featuring baseball players, teams, or events, traditionally traded and valued by enthusiasts.