Since crowd funding sites do not themselves invest in business start ups that raise funds on their sites, they don't reduce:
A)the principal-agent problem
B)information costs
C)transaction costs
D)asymmetric information

Question

Quizplus · Accepted Answer

Crowdfunding sites do not invest in the startups themselves, so they do not address the principal-agent problem, which involves conflicts of interest between a principal (investor) and an agent (entrepreneur).

Since Crowd Funding Sites Do Not Themselves Invest in Business