ITPEC IP April 2020 Question 86
Which of the following is the most appropriate example of crowdfunding?
Explanation
A company collects investments from a large number of persons over the Internet — that is crowdfunding: funding from the crowd.
The company or project owner publishes its plan and target amount on an Internet platform, and many individuals each contribute a relatively small amount. Depending on the type, backers receive a product or other reward (reward-based), interest, a share of profits or equity (investment-based), or nothing at all (donation-based).
Answer (b)
Why not others:
- •(a) — virtual storage used over the Internet is online storage, a cloud service; "cloud" only sounds like "crowd"
- •(c) — compensating losses caused by cloudy and rainy weather is weather insurance (a weather derivative), another play on "cloud"
- •(d) — finding the desired information accurately in large volumes of information is information retrieval or data mining technology; no money is raised
Key rule: Crowdfunding gathers money from the crowd over the Internet; crowdsourcing gathers work from the crowd.
Business Industry · AI-written, may contain errors
This question comes from an official ITPEC past paper. ITPEC Practice is an independent study tool and is not affiliated with ITPEC. See the official IP past-paper collection or Report an issue.