Consolidated Business Group holds a diverse portfolio of business interests including several cash cows.What does having cash cows mean for Consolidated's strategies?
A)Consolidated will likely be harmed should there be unstable financial conditions.
B)Consolidated is likely to experience cash shortfalls in the near future.
C)Consolidated needs to divest itself of the cows and sell off their assets.
D)Consolidated can afford to invest in riskier businesses.
E)Consolidated is likely to grow rapidly as the cows' markets expand.

Question

Quizplus · Accepted Answer

Having cash cows means that Consolidated Business Group has businesses that are bringing in steady profits with little need for further investment. This gives them the financial flexibility to invest in riskier ventures or explore new business opportunities. Consolidated can afford to take on more risk without jeopardizing their overall financial stability.

Consolidated Business Group Holds a Diverse Portfolio of Business Interests