As the Opening Case Pointed Out, on the Positive Side

Multiple Choice

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.