Chap 9

How many laws are considered crucial for equity investment development in the United Kingdom ?

• 4

• 5

• 6

• 7

Are laws designed by the EU Banking and Financial Services Act available for UK financial systems?

• YES

• NO

What set of laws do the UK and US use?

• Common law

• Civil law

• Canon Law

General rule about equity investments in the United Kingdom that differ from the European framework: 

• GLimits on holding shares for shareholders

• Distinction in investment based on the European “banking system” and “financial services system”

• Usage of rules for Market discipline (corporate governance) and Investors duties and rights 

Are there any legal requirements dictating private equity investment agreements ?

• Yes

• No

What are the pillars for equity investors in US ?

• Discipline for stock exchange and securities

• Corporate governance rules

• Discipline for insurance and pension funds

• General rules for banks

Which percentage of maximum debt that SBICs can lend by public authority with a very low interest rate ?

• 56%

• 33%

• 43%

• 69%

Which one is NOT the revenues to general partners?

• Entrance fee from investors

• Management fee

• Percentage of management fee for the advisor

• Carried interest

Right formula:

• Carried interest =%[ Final IRR + Hurdle rate]

• Carried interest =%[ Final IRR - Hurdle rate]

• Carried interest =%[ Hurdle rate + Final IRR]

• Carried interest =%[ Hurdle rate - Final IRR]

 What's the name for a fund that can leverage?

• Venture Capital Fund

• Closed -end fund

• SBICs

• Banks