Your oldest holding, Taco Rocket, has not grown much in recent years, but due to low debt, it generates a huge amount of cash.According to BCG, Taco Rocket would be considered a ________.

Question

Quizplus · Accepted Answer

A "cash cow" is a business unit that has a high market share in a slow-growing industry. It generates more cash than it needs to maintain its market share and has limited opportunities for growth. Given the information provided about Taco Rocket's lack of growth, but its ability to generate a large amount of cash due to low debt, it fits the definition of a cash cow.

Your Oldest Holding, Taco Rocket, Has Not Grown Much in Recent