If an Investment Management Firm Is Known to Be a "Two

question 18

Multiple Choice

If an investment management firm is known to be a "two and twenty shop", this implies that the firm:

• A) receives an annual 2% fee on invested capital, and a 20% carried interest
• B) receives an annual 20% fee on invested capital, and a 2% carried interest
• C) receives an annual 2% fee on gross operating profits, and a 20% carried interest
• D) receives an annual 20% fee on gross operating profits, and a 2% carried interest

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Definitions:

Deskilling

The process through which skilled labor within an industry or economy is eliminated by new technologies or the simplification of tasks.

Postindustrialism

A stage of economic development in which the service sector generates more wealth than the manufacturing sector of the economy.

Multinational Corporations

Large companies that operate in several countries around the world and often play a significant role in globalization and the economy.

Assembly Of Goods

The process of combining components or parts to manufacture a finished product.