CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

Which statement(s) is (are) true for a LBO firm? Buyout investments usually have:

I. Measurable risks.
II. Established products.
III. High working capital requirement.
IV. Significant asset base.
Correct Answer: I, II and IV

They usually have low working capital requirement.

User Contributed Comments 1

User Comment
davidt87 III would be a disincentive to taking on a lot of debt
You need to log in first to add your comment.