Scenario - QT.com
Faced with rapidly growing business, Quick Trade, Inc., a global brokerage company with the largest market share, recently announced that they have established an on-line stock investment and trading subsidiary, QT.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 Quick Trade'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

Quizplus · Accepted Answer

Quick Trade's traditional brokerage business has the largest market share, which indicates that it is a mature and established business with a stable revenue stream. However, if it were to face declining business growth, it would still generate significant profits due to its dominant market position, which makes it a cash cow.

Scenario - QT.com Faced with Rapidly Growing Business, Quick Trade, Inc., a Global