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Questions and Answers
What can raise doubt about the effectiveness of kick-out rights as a barrier?
What can raise doubt about the effectiveness of kick-out rights as a barrier?
- Financial consequences for limited partners when exercising kick-out rights. (correct)
- Existence of a clear process to exercise kick-out rights.
- The likelihood of the rights being exercised is high.
- Availability of suitable replacements for current decision makers.
Under which circumstance might kick-out rights be seen as less effective?
Under which circumstance might kick-out rights be seen as less effective?
- When the probability of exercising the rights is low.
- When there are many qualified replacements for current decision makers.
- When limited partners face financial penalties for exercising the rights. (correct)
- When an explicit mechanism for exercising the rights exists.
What can affect the feasibility of exercising kick-out rights?
What can affect the feasibility of exercising kick-out rights?
- Financial penalties associated with exercising the rights. (correct)
- Availability of suitable replacements.
- Existence of an explicit exercise mechanism.
- Probability of exercising the rights.
When might one question the effectiveness of kick-out rights as a barrier?
When might one question the effectiveness of kick-out rights as a barrier?
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What could make kick-out rights less effective as a barrier?
What could make kick-out rights less effective as a barrier?
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