Scenario - SS.com
Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an on-line stock investment and trading subsidiary, SS.com, where investors can trade stocks at the lowest rates in the industry. The .com subsidiary has less than one percent market share but it faces a very high business growth rate. In the brokerage industry the competition is fierce and all players are cutting their on-line commission rates.
-If Swift Stock's traditional brokerage business were to face a declining business growth, it may need to be reclassified as a _____.
A) cash cow
B) dog
C) star
D) question mark
E) dead business

Question

Scenario - SS.com
 Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an on-line stock investment and trading subsidiary, SS.com, where investors can trade stocks at the lowest rates in the industry. The .com subsidiary has less than one percent market share but it faces a very high business growth rate. In the brokerage industry the competition is fierce and all players are cutting their on-line commission rates.
-If Swift Stock's traditional brokerage business were to face a declining business growth, it may need to be reclassified as a _____.
A) cash cow
B) dog
C) star
D) question mark
E) dead business

Quizplus · Accepted Answer

If Swift Stock's traditional brokerage business were to face declining growth, it would still have a high market share, which means it would still generate a lot of income. This income would be considered a cash cow, meaning it provides a steady cash flow for the company with minimal investment needed to maintain it.

Scenario - SS.com Faced with Rapidly Growing Business, Swift Stocks, Inc., a Stocks