The following are advantages of private-equity partnerships: 1) Carried interest gives the general partners potential for high profits. II) Carried interest, because it is a call option, gives the general partners incentives to take risks. III) There is no separation of ownership and control as general partners can intervene in the fund's portfolio companies any time performance lags or strategy needs change. IV) There is no free cash flow problem as cash from the first round must be distributed to investors and not reinvested. Multiple Choice I, II, and IV only I and II only I and IV only I, II, III, and IV