As the opening case pointed out, on the positive side private, equity firms excel in all the following ways EXCEPT:
A) They reduce income inequality between financiers and the rest of us.
B) They use a high level of debt that imposes strong financial discipline.
C) Private equity turns managers from agents to principals with substantial equity, thus providing a powerful incentive to them.
D) They pay managers more generously, but also punish failure more heavily.
Correct Answer:
Verified
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