Which of the following is NOT an advantage of private equity funds?
A) Private companies are not subject to the same regulations as a publicly traded company.
B) Managers of private firms are not under the same level of pressure to produce high returns compared to the managers of publicly traded firms.
C) Private equity firms can do a better job in controlling the problems created by moral hazard.
D) Private equity funds give managers of the companies higher stakes compared to managers in publicly traded companies.
C
You might also like to view...
In research, what is the importance of experiments? What is meant by randomization in experiments?
What will be an ideal response?
In the generalized dividend model, if the expected sales price is in the distant future
A) it does not affect the current stock price. B) it is more important than dividends in determining the current stock price. C) it is equally important with dividends in determining the current stock price. D) it is less important than dividends but still affects the current stock price.
If the price of a resource falls, other things constant,
a. demand for the product it produces will increase b. demand for a substitute product will increase c. demand for a substitute resource will fall d. supply of that resource will rise e. supply of a substitute resource will also rise
The two broad themes that have driven this text are that ___________ are both evolving.
Fill in the blank(s) with the appropriate word(s).