Question Details

Crowd funding deals with mobilization of funds for a project from a large number of people, who would be willing to invest smaller amounts through web-based platforms in the project. Based on the above paragraph, which of the following is correct about crowd funding?

Options

A

Funds raised through unwilling contributions on web-based platforms.

B

Funds raised through large contributions on web-based platforms.

C

Funds raised through coerced contributions on web-based platforms.

D

Funds raised through voluntary contributions on web-based platforms.

Correct Answer :

Funds raised through voluntary contributions on web-based platforms.

Solution :

The correct option is: Funds raised through voluntary contributions on web-based platforms.

To understand why this option is correct, we can break down the information provided in the paragraph step-by-step:
1. Identify the willingness of the contributors: The passage states that crowdfunding involves people "who would be willing to invest." The word "willing" indicates that the act of investing is done by choice, free will, or consent. This is the exact definition of a voluntary contribution.
2. Identify the medium used: The passage mentions that these investments are made "through web-based platforms."
3. Compare with other choices:
• Since the contributors are "willing," the contributions cannot be "unwilling" or "coerced" (forced). This rules out those options.
• The passage states that contributors invest "smaller amounts," which directly contradicts the option suggesting "large contributions."

Thus, combining the willingness ("voluntary") and the medium ("web-based platforms"), we find that the correct statement is that crowdfunding consists of funds raised through voluntary contributions on web-based platforms.

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