The cash cow:
A) generates tremendous profits in a rapidly growing industry.
B) has a small market share in a rapidly growing industry.
C) has a small market share in a slow-growth industry.
D) has a large market share in a slow-growth industry.
E) is generally a dead business that should be divested.

Question

Quizplus · Accepted Answer

A cash cow is a business with a large market share in a slow-growth industry. It may not be as profitable as it once was, but it still generates a steady and reliable income. The term "cash cow" comes from the idea that the business is like a cow that produces milk (profits) consistently, even though it may not be as productive as it once was. Divesting this type of business would not be advisable since it is still generating income.

The Cash Cow