ITPEC FE Morning April 2023 Question 66
ITPEC FE Morning April 2023 — Question 66 of 80
Crowdfunding — identify the correct definition among similar internet business mechanisms.
Crowdfunding is raising money from a large number of people via the internet to fund a business project, where backers expect products or rights in return (e.g., Kickstarter, Indiegogo).
Answer (d) describes exactly this: collecting funds from an unspecified number of supporters for a project published online, with the expectation of receiving products and rights.
Why not others:
- (a) — describes crowdsourcing: outsourcing tasks to an unspecified crowd via the internet
- (b) — describes account aggregation: a service that displays multiple bank accounts through a single authentication
- (c) — describes affiliate marketing: payment from an advertiser to a website operator when a visitor purchases through a referral link
Key rule: Crowdfunding = money from the crowd for a project; crowdsourcing = work from the crowd for a task.
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