Hedge Funds That Are Organized as a Limited Partnership

question 91

Multiple Choice

Hedge funds that are organized as a limited partnership

• A) are less restricted in how they make investments than general partnership hedge funds.
• B) typically have larger abnormal returns than general partnership hedge funds.
• C) are usually less correlated with traditional asset class investments than general partnership hedge funds.
• D) have less liquid investments than mutual funds.
• E) have more liquid investments than mutual funds.

---

Definitions:

Average Collection Period

The average amount of time it takes for a business to receive payments owed by its customers for credit sales.

Sales on Account

Transactions where goods or services are sold and payment is deferred to a future date, typically recorded as accounts receivable.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered or used but not yet paid for.

Operating Cycle

The duration between the acquisition of inventory and the collection of cash from receivables, indicating the time needed to sell inventory and collect cash.