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

---

Definitions:

Relationship Marketing

A strategy focused on building long-term engagement and loyalty with customers rather than on individual transactions.

Service Encounter

The exchange between a consumer and a service provider at the time a service is delivered.

Distribution Site

is a location or platform where products or services are made available to purchasers or end-users.

Inconsistency

The lack of uniformity or stability in actions, values, methods, measures, principles, expectations, or outcomes.