1- As applied to compensation structures in partnership, in principal-agent theory the sponsor is said to be the agent and the limited partner the principal. This means...

A - the limited partner works for the sponsor.

B- the sponsor works for the limited partner.

C - the limited partner receives preference in the distribution of cash flows.

D - the sponsor receives preference in the distribution of cash flows

2 - In general, the least expensive form of funding for investment is...

A - equity

B - preferred equity

C - mezzanine debt

D -senior mortgage debt