The Following Statements Are True of Private-Equity Partnership Agreements

question 38

Multiple Choice

The following statements are true of private-equity partnership agreements:
I.The partnership agreement has a limited term, typically 10 years or less.
II.The general partners get a management fee plus carried interest in 20% of any profits earned by the partnership.
III.The limited partners get paid off first, but they get only 80% of any further returns.
IV.The general partners can reinvest the limited partners' money.

• A)I and II only
• B)I, II, and III only
• C)I, II, III, and IV
• D)II and III only

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Definitions:

Positive And Negative Values

Refers to the desirable or undesirable characteristics or attitudes that an individual or society holds.

Limit

The maximum extent, quantity, or degree of something that is permissible or possible.

Segments

Various parts or sections into which something is divided, often used in marketing to denote different target market groups.

Pie Graph

A visual representation of data using a circular chart divided into sectors, where each sector indicates a proportion of the whole.