- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 4. Working Capital and Liquidity
- Subject 3. Managing Working Capital and Liquidity
CFA Practice Question
Small, young and fast growing companies usually rely on ______ as their main financing source. A. internal generated cash flows
B. publicly issued debt
C. private equity
Correct Answer: C
They typically don't have positive and predictable cash flows, and debt financing is usually expensive for them.
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