Asked by Braxton Graves on Jun 01, 2024
Verified
What is characteristic of the reward model of crowdfunders?
A) Investors provide financial support with no expectation of direct return.
B) Investors are given prizes for their financial support,such as product samples or experiences.
C) Equity is exchanged for the contribution.
D) Funds are treated as loans.
Reward Model
A system or framework designed to provide incentives or rewards based on certain behaviors or achievements.
Crowdfunders
Individuals who collectively invest or donate small amounts of money towards a project, product, or venture typically through an online platform.
Prizes
Awards or rewards given for a specific achievement or competition.
- Identify the various models of crowdfunding and their characteristics.
Verified Answer
ZK
Zybrea Knight
Jun 04, 2024
Final Answer :
B
Explanation :
The reward model of crowdfunding involves investors receiving prizes for their financial support, such as product samples or experiences. This model does not involve equity exchange or treating funds as loans, and there may not be an expectation of direct return on investment.
Learning Objectives
- Identify the various models of crowdfunding and their characteristics.
Related questions
What Is Characteristic of the Lending Model of Crowdfunders ...
What Is Characteristic of the Patronage Model of Crowdfunders ...
John Is Raising Money on a Crowdfunding Site,and in Return ...
In the Investor Model,crowdfunding Backers Will Expect an Equity Stake ...
Crowdfunding Has Been Used to Raise Billions of Dollars for ...