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 publically 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 publically traded companies.
Correct Answer:
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