Which of the Following Is a Characteristic of Private Equity

question 8

Multiple Choice

Which of the following is a characteristic of private equity creation?

• A) It is a linear process.
• B) It requires a long-term perspective.
• C) It hinders entrepreneurship.
• D) It targets quick returns on investments made over a short period of time.

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Definitions:

Lockbox Arrangement

A service provided by banks to process payments quickly by having checks sent to a special post office box.

Customer Base

The customer base refers to the group of consumers who repeatedly purchase the goods or services of a business.

Bank

A financial institution licensed to receive deposits and make loans, and offer other financial services, such as wealth management and currency exchange.