Which one of the following is true about a cash cow?
A)Cash cows can barely support themselves;in some cases,they actually drain off cash resources generated by other SBUs.
B)An SBU that is a cash cow has a small share of a high-growth market.
C)An SBU that is a cash cow has a large share of a market that is growing only slightly.
D)An SBU that is a cash cow has a high share of a high-growth market and typically needs large amounts of cash to support rapid and significant growth.
E)Cash cows generate large amounts of cash for the organization and are usually segments in which management can make additional investments and earn attractive returns.

Question

Quizplus · Accepted Answer

Cash cows are defined as businesses or products that have a large share of a slow-growing market. They generate more cash than they consume, which makes them valuable assets for a company. This is because they require less investment to maintain their market position and can provide the company with funds to invest in other areas.

Which One of the Following Is True About a Cash