NISM Series XIX-C AIF Managers Certification Exam -13
NISM Series XIX-C AIF Managers Certification Exam -13
Q 1. What type of structure is widely prevalent abroad where investment managers are known as general partners (GPs) or designated partners?
a) Corporate structure
b) Partnership structure
c) Limited liability structure
d) None of the above
Q 2. What is the term used for the undrawn amount in an AIF, which represents pending drawdowns?
a) Committed Capital
b) Dry Powder
c) Liquid Assets
d) Uncalled Commitment
Q 3. What is the primary purpose of the Private Placement Memorandum (PPM)?
a) To outline the fund's performance history
b) To provide investors with detailed information on the fund's terms and conditions
c) To determine the management fee
d) To ensure compliance with government regulations
Q 4. What role do ESG-themed exchange-traded funds (ETFs) play in the investment landscape?
a) They prioritize financial returns over societal interests
b) They are focused solely on niche themes such as low-carbon and climate
c) They are less risky compared to traditional ETFs
d) They have lower returns compared to traditional ETFs
Q 5. What type of crowdfunding is known as 'Peer-to-Peer Lending'?
a) Equity crowdfunding
b) Reward-based crowdfunding
c) Donation-based crowdfunding
d) None of the above
Q 6. When can the Green Shoe Option be exercised in the context of AIFs?
a) Only before the first close of the fund
b) Only after the final close of the fund
c) Time during the fundraising process
d) None of the above
Q 7. What role do distributors and placement agents play in the growth of the AIF industry?
a) They are responsible for executing trades on behalf of AIFs
b) They create awareness and familiarity among investors with AIF products and services
c) They manage the infrastructure of AIFs
d) None of the above
Q 8. What distinguishes a buyout transaction from a pure-play private equity investment?
a) Primary subscription of shares
b) Acquisition of secondary shares
c) Growth capital provision
d) Tax optimization
Q 9. What is the typical proportion of equity financing in a classic LBO?
a) 100%
b) 70%
c) 50%
d) 10%
Q 10. What is the Kurtosis value of a perfectly normal distribution?
a) 0
b) 1
c) 2
d) 4
Q 11. What is the primary characteristic of an LBO financing structure?
a) High equity proportion
b) Low leverage
c) Minimal risk of default
d) Strong management structures
Q 12. What is a key requirement for MBOs to succeed?
a) Regulatory approval
b) Strong management structures
c) Low acquisition price
d) Public ownership structure
Q 13. What does a representation of a trust primarily entail?
a) Ability to sue or be sued on behalf of the trust
b) Decision-making authority
c) Investment management discretion
d) Tax optimization strategies
Q 14. What principles should pool satisfaction to ensure investors are not disadvantaged from a taxation perspective?
a) Tax evasion
b) Tax arbitrage
c) Tax optimization
d) Tax haven
Q 15. What is typically incorporated to enable the pooling of debt and equity capital in an LBO?
a) Hedge fund
b) Private equity firm
c) Investment bank
d) Real estate investment trust
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