Which One of the Following Is the Performance Fee Earned

question 55

Multiple Choice

Which one of the following is the performance fee earned by the manager of a private equity fund?

• A)clawback provision
• B)hurdle rate
• C)carried performance fee
• D)carried interest
• E)clawback interest

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Definitions:

Profit Margin

A financial metric used to evaluate the profitability of a business, calculated by dividing net income by sales.

Operating Expenses

Costs associated with the day-to-day operations of a business, such as rent, utilities, and salaries, excluding the cost of goods sold.

Cost of Goods Sold

The direct costs attributed to the production of goods sold by a business, including materials and labor.

Net Sales

The revenue a company generates from sales after deducting returns, allowances for damaged or missing goods, and discounts.