When an entrepreneur solicits small investments and/or donations from the public to fund the start-up of their company, this is referred to as:

Question

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Soliciting small investments or donations from the public to fund a start-up is referred to as crowd-funding. Choices A and C are also methods of raising capital, but they refer to specific types of investors (the entrepreneur themselves or experienced individuals looking to invest in start-ups, respectively) rather than a broad public audience. Using corporate investors (choice B) typically involves seeking larger investments from established companies rather than small donations from the general public.

When an Entrepreneur Solicits Small Investments And/or Donations from the Public