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Which item is NOT true regarding promotes? A. They are only earned if the investment returns above a benchmark, such as a target IRR B.
Which item is NOT true regarding promotes?
A. They are only earned if the investment returns above a benchmark, such as a target IRR
B. They often qualify for long-term capital gain taxation, and thus are considered a tax-advantage source of income
C. They are considered incentive compensation to the sponsor/general partner to make the investment successful
D. They earn profits in proportion to the investments of the sponsors
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