Exam IIA-CIA-Part3 Topic 6 Question 254 Discussion

Actual exam question for IIA's IIA-CIA-Part3 exam
Question #: 254
Topic #: 6
All other things held constant, external capital requirements are lower for entities with which one of the following characteristics?

Suggested Answer: C Vote an answer

The capital intensity ratio is the amount of assets required per dollar of sales. External financial requirements are lower if the capital intensity ratio is low because sales can grow rapidly without much outside capital, other things held constant.

by Eunice at Oct 25, 2025, 07:03 AM

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