What is the business term given for a company that generates cash flows over and above its internal requirements and can provide the corporate parent with funds for reinvestment?

Question

Quizplus · Accepted Answer

A company that generates cash flows over and above its internal requirements and can provide the corporate parent with funds for reinvestment is referred to as a cash cow. It is a business term used to describe a product or a business unit that generates significant cash flow and has high market share in a slow-growing or mature industry. These cash cows have a low growth rate but high profitability, which can be used to fund other business areas with high potential for growth.

What Is the Business Term Given for a Company That