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 positive cash flows over and above its internal requirements, thus providing a corporate parent with cash flows that can be used for financing new acquisitions, investing in cash hog businesses, and/or paying dividends.
D) is a business with such a strong competitive advantage that it generates big profits, big returns on investment, and big cash surpluses after dividends are paid.
E) has good strategic fit with a cash hog business.
Correct Answer:
Verified
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