Which of the Following Is NOT an Advantage of Private

question 7

Multiple Choice

Which of the following is NOT an advantage of private equity funds?

• A) Private companies are not subject to the same regulations as a publicly traded company.
• B) Managers of private firms are not under the same level of pressure to produce high returns compared to the managers of publically traded firms.
• C) Private equity firms can do a better job in controlling the problems created by moral hazard.
• D) Private equity funds give managers of the companies higher stakes compared to managers in publically traded companies.

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