The Following Are Advantages of Private-Equity Partnerships

question 37

Multiple Choice

The following are advantages of private-equity partnerships:
I.Carried interest gives the general partners potential for high profits.
II.Carried interest, because it is a call option, gives the general partners incentives to take risks.
III.There is no separation of ownership and control as general partners can intervene in the fund's portfolio companies any time performance lags or strategy needs change.
IV.There is no free cash flow problem as cash from the first round must be distributed to investors and not reinvested.

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

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Definitions:

Spinal Cord Injury

Damage to the spinal cord that results in a loss of function such as mobility or feeling below the site of the injury.

Logrolling Technique

A technique used to move a patient without flexing their spine, by keeping the body in a straight, aligned position.

Osteoporosis

A condition characterized by a decrease in bone density, leading to fragile bones and an increased risk of fractures.

Weight-Bearing Exercise

Physical activity that requires one to support their own weight or lift weights, strengthening bones and muscles.