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A "Cash Cow" Type of Business

Question 128

Multiple Choice

A "cash cow" type of business:


A) generates unusually high profits and returns on equity investment.
B) is so profitable that it has no long-term debt.
C) generates cash surplus over what is needed to adequately fund their operation,growth,and reinvestment.
D) has a strong competitive advantage and can generate profits and returns on investment and provide dividend payments to shareholders.
E) has good strategic fit with a cash hog business.

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