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Use the Following Information to Answer the Question(s) Below

question 48

Multiple Choice

Use the following information to answer the question(s) below.

Suppose that Galt Ventures, a venture capital firm, raised $250 million of committed capital. Each year over the 10-year life of the fund, 2% of this committed capital will be used to pay Galt's management fee. As is typical in the venture capital industry, Galt will only invest $200 million (committed capital less lifetime management fees) . At the end of 10 years, the investments made by the fund are worth $800 million. Galt also charges 20% carried interest on the profits of the fund (net of management fees) . Assume that Galt collects the $250 million of committed capital and invests $200 million of it immediately. Also assume that Galt collects all proceeds from its investments at the end of the ten-year life.

-The IRR on the investment of a limited partner into Galt Ventures net of all management fees and expenses is closest to:

Identify the strategies used for vertical organization and their impact on organizational effectiveness.

Analyze the role of decentralization in empowering lower-level departments and employees.

Appreciate the importance of integrated work units in achieving organizational goals.

Evaluate the impact of clear rules, operating procedures, and organizational structures on organizational performance.

Definitions:

Commonly Known Danger

A hazard or risk that is well-known to the average individual, implying that individuals have a responsibility to protect themselves.

Assumption Of Risk

A defense against negligence that can be used when the plaintiff was aware of a danger and voluntarily assumed the risk of injury from that danger.

Strictly Liable

The legal responsibility for damages, or loss, regardless of the actor's fault or intention.

Product Liability

is the legal responsibility of manufacturers and sellers to compensate for harm caused by defective or unsafe products.