Why Is Access to Capital an Increasing Challenge for Social

question 2

Multiple Choice

Why is access to capital an increasing challenge for social entrepreneurs?

• A) Because capital markets do not exist for not-for-profit sectors
• B) Because nonprofits are not sustainable and scalable
• C) Because of competition from other social ventures
• D) Because of using bootstrapping as a method of resource acquisition

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Definitions:

Investment Swindle

A fraudulent scheme designed to deceive investors into giving money on the premise of receiving significantly higher returns.

Ponzi Scheme

A fraudulent investing scam promising high rates of return with little risk to investors, which generates returns for earlier investors by acquiring new investors.

Fictitious Sources

Information or references claimed in a work or argument that do not actually exist; often used to mislead or fabricate support.

Necessity Defense

A legal defense asserting that a criminal act was justified because it was necessary to prevent a more serious harm.