Which of the following statements about Crowdfunding is/are correct? 1. Crowdfunding is solicitation of funds (small amount) from multiple investors through a web-based platform or social networking site for a specific project. 2. 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:

Which of the following statements about Crowdfunding is/are - MCQ (English)

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Which of the following statements about Crowdfunding is/are - MCQ (English) | ObjectiveMcq

QuestionUPSC CSE PRELIMS2026General StudiesCrowdfundingWhich of the following statements a...

UPSC CSE PRELIMS2026General Studies Crowdfunding

Hard

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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:

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.