Element 10 10.4.2 Alternative investment opportunities

What is crowdfunding primarily used for?

• Investing in real estate
• Investing in large corporations
• Investing in small fast-growing businesses
• Investing in government bonds

In peer-to-peer lending, who can you lend money to?

• Governments
• Large Banks
• Businesses or individuals
• Charities

What do angel investors typically receive in return for their investment?

• Interest payments
• Company equity
• Rewards or recognition
• Government grants

Which of the following is NOT a form of crowdfunding?

• Equity crowdfunding
• Reward-based crowdfunding
• Debt-based crowdfunding
• Charity fundraising

What kind of businesses are usually targeted by crowdfunding?

• Established multinational companies
• Small, fast-growing businesses
• Government-owned enterprises
• Non-profit organisations

What is a key benefit for businesses using peer-to-peer lending?

• Tax exemptions
• No need to repay the loan
• Access to funds without traditional banks
• Government subsidies

Which platform is commonly used for reward-based crowdfunding?

• Kickstarter
• LinkedIn
• PayPal
• HSBC

What is a common characteristic of angel investors?

• They are usually financial institutions
• They provide loans without interest
• They are individual investors
• They only invest in non-profit ventures

How is peer-to-peer lending different from traditional bank loans?

• It involves higher interest rates
• It bypasses traditional financial institutions
• It only applies to real estate
• It doesn't require repayment

What do investors expect when they participate in equity crowdfunding?

• Annual interest payments
• Company equity
• Fixed monthly repayments
• Tax deductions