The Following Statements Are True of Private-Equity Partnership Agreements

question 38

Multiple Choice

The following statements are true of private-equity partnership agreements:
I.The partnership agreement has a limited term, typically 10 years or less.
II.The general partners get a management fee plus carried interest in 20% of any profits earned by the partnership.
III.The limited partners get paid off first, but they get only 80% of any further returns.
IV.The general partners can reinvest the limited partners' money.

• A)I and II only
• B)I, II, and III only
• C)I, II, III, and IV
• D)II and III only

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Definitions:

Price

Price is the amount of money expected, required, or given in payment for something.

Price Elasticity

Price elasticity quantifies how sensitive the demand or supply of a product is to variations in its price.

Sausages

Cylinder-shaped meat products usually made from ground meat, fat, salt, and spices, often encased in a skin.

Population

The total number of individuals or entities within a specific group or geographical area, often used in statistical and demographic analysis.