Venture capitalists have many opportunities to expropriate the limited partners' wealth.This can be controlled by:

Question

Quizplus · Accepted Answer

Both having a positive reputation and having contractual covenants can help control venture capitalists' opportunities to expropriate limited partners' wealth. While requiring the general partner to have limited liability could also potentially help, it is not as effective as the other two options. Therefore, the best choice is E, which includes both (a) and (b).

Venture Capitalists Have Many Opportunities to Expropriate the Limited Partners