Shawarma Rocket II (Scenario)
As the original owner of Shawarma Rocket, you have seen your business holdings grow substantially over the last 10 years. The number of stores you own and franchise has grown by 200 percent and you own a number of companies in related and unrelated areas.
-You called the Boston Consulting Group (BCG), and they have provided you with some advice based on their famous corporate portfolio matrix. Your oldest holding, Shawarma Rocket, has not grown much in recent years, but due to low debt, it generates a huge amount of cash. According to BCG, Shawarma Rocket would be considered a ________.

Question

Quizplus · Accepted Answer

According to the scenario, Shawarma Rocket has not grown much in recent years but generates a huge amount of cash due to low debt. According to the BCG Matrix, a company in this position would be considered a "cash cow" – a company that generates high profits and cash flow with low growth potential. Therefore, the best answer is C.