A Hedge Fund

question 49

Multiple Choice

A hedge fund:

• A) may charge relatively high fees.
• B) must be registered if there are ten or more investors.
• C) is generally structured as a corporation.
• D) is limited to $1 million in assets.
• E) is fairly complicated to legally establish.

---

Definitions:

Formality

Specific procedures or ceremonial acts required by tradition, law, or other authority to validate acts, documents, or agreements.

Limited Liability

A legal principle that protects an owner or investor's personal assets from being used to satisfy business debts or claims.

RUPA

The Revised Uniform Partnership Act, which governs the operation of partnerships in the United States.

Co-owner

An individual or entity that shares ownership in an asset with one or more parties.