1.
Which of the following statements about Crowdfunding is/are correct?
- Crowdfunding is solicitation of funds (small amount) from multiple investors through a web-based platform or social networking site for a specific project.
- Small and Medium Enterprises (SMEs) are able to raise funds at lower cost of capital without undergoing rigorous procedures.
Select the answer using the code given below:
A
1 only
B
2 only
C
Both 1 and 2
D
Neither 1 nor 2
View Answer
Correct Answer: C — Both 1 and 2
Explanation:
Crowdfunding is correctly described as raising small amounts from many people through online platforms for a specific project or venture. It is also a way for SMEs to access funds more easily and often with lower procedural barriers than traditional fundraising routes. Hence both statements are accepted.