0
A first loss participation account is an investment account where the manager puts up a small percentage of the moneyand the balance by the investor. The profits are split pursuant to an agreement usually based on capital and a portion is reallocated back to the manager as an incentive fee. Losses are only allocated to the manager's account until the manager's capital is wiped out. As an incentive to the manager to do this, usually the incentive fees are very high (ranging from 40% to90%). Risk profiles are established by the investor and the manager must run the account within those limits.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
Which account you in 3 net loss?
The profit and loss account is the account that can be used to calculate the net loss.
Why profit and loss account is called as profit and loss account and why not profit or loss account?
Tradition, and the need to call it something.
Preparing departmental trading and profit and loss account?
When preparing departmental trading and a profit and loss account, expenses must be taken into account first. These include departmental expenses, and common expenses, including administrative expenses.
What are the limitations of profit and loss account?
"What are the limitations of profit and loss account?"
What financial statement is prepared first in accounting?
for a manufacturing concern it will be a manufacturing account and for a non manufacturing concern it will be a trading account or a profit and loss account or income and expenditure account.
What is debit balance of profit and loss account?
Debit balance of Profit & Loss Account represents "Loss"
What factors are taken into account when assessing risk?
There are two factors that need to be taken into account when it comes to risk assessment. First of all, there is the magnitude of the potential loss. Secondly, there is the probability that the loss will occur.
What is the difference between profit and loss account and profit and loss appropiation account?
Profit and loss accont is used to calculate the profit or loss of business while profit and loss appropriation account is used to allocate or distribute net income or loss to share holders or different reserves account.
Profit and loss appropriation account uses meaning?
details of profit and loss appropriation account Profit and loss appropriation account is prepared after profit and loss account..It s a account where the profits earned by the company is brought in from profit and loss accont and it s distributed to various accounts like interim divident account, provision for taxiation account, general reserve account etc.....it s a account which shows how the profits are distributed in an organisation.....
Is profit and loss account is a nominal account?
Yes. Profit and loss account is a nominal account and also trading a/c to be prepared at the end of the year.
Advantages and disadvantages of trading profit and loss account?
: Profit and loss account gives the actual information about net profit or net loss of the business for an accounting period, Profit and loss account gives the actual information about indirect expenses, Profit and loss account serves to show the ratio between net profit to sales, Profit and loss account helps in showing the ratio between net profit to operating expenses, Profit and loss account helps in controlling indirect expenses
What did Russia receive for its participation in world war 1?
Defeat, Communism and loss of territory.
