The Term "Carried Interest" Refers To

question 48

Multiple Choice

The term "carried interest" refers to:

• A)interest not currently paid but which must be paid in the future by a
• B)professional venture capitalist
• C)interest transported directly to a bank
• D)interest owed on a loan in default
• E)the portion of profits paid to a professional venture capitalist as incentive compensation

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Definitions:

Selling Price

The amount of money for which a product or service is sold to customers.

Accrued Loss

Refers to a loss that has occurred but has not yet been recorded in the accounting records through the date of the financial statements.

Purchase Commitments

Agreements to buy goods or services at a predetermined price, often specifying quantity and delivery dates.