1.The right to recover losses through the process of foreclosure in the capital structure is known as what? Senior Debt Mezzanine Financing Common/ sponsor equity Preferred equity

2.This is commonly referred to as the general partner with the lowest overall priority but could earn highest returns under the capital structure? Senior Debt Mezzanine Financing Common/ sponsor equity Preferred equity

3.This has features of both debt and equity but has priority over most sources of the true equity in the capital structure? Senior Debt Mezzanine Financing Common/ sponsor equity Preferred equity

4.This has preference of return of capital as well as seniority over an promoted equity of the sponsor/ general partner in the capital structure? Senior Debt Mezzanine Financing Common/ sponsor equity Preferred equity

5. Which is not a driving factor for using complex/ financial structures in real estate deals? Allows for more optimal sharing of returns based on risks and risk transfers Allows for lower overall cost of capital The complexity of the structure actually makes payouts simpler and easier to calculate The complex structures allow owners/ operators (gp & sponsor) to be compensated for investing the monies of large institutions investors in a mutual manner

6.Which is false about promotes? They earn profits in proportion to the investments of the sponsors Its considered incentive compensation to the sponsor/ general partner Its only earned if the investment returns above a benchmark such as a target irr They often qualify for long term capital gain taxation