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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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