Which of the Following Is Correct Regarding the Compensation Paid

question 56

Multiple Choice

Which of the following is correct regarding the compensation paid to private equity fund managers?

• A)Managers typically receive 20 percent of fund profits but no separate management fee.
• B)Managers typically receive a high percentage management fee but no portion of fund profits.
• C)Management compensation is usually subject to a clawback provision to limit the performance fees.
• D)"Carried interest" refers to the interest fund managers earn on performance fees.
• E)Fees paid to fund managers do not reduce the net return of the fund.

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Definitions:

Senses

The physiological capacities of organisms that provide data for perception, including sight, hearing, smell, taste, and touch.

Cerebral Cortex

The outer layer of the cerebrum in the brain, responsible for many complex functions including thought, emotion, reasoning, and language.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord.

Experience-Expectant

Refers to brain growth and development that occurs in response to general environmental stimuli that are expected to be part of all human environments.