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:

Straight-Line Depreciation

A technique that distributes the expense of a physical asset evenly over its lifetime in yearly installments.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues, indicating the actual profitability of the company over a specified time period.

Bad Debt Expense

The estimated amount of accounts receivable that a company does not expect to collect, treated as an expense on the income statement.