Which of the Following Is True About Business Units Categorized

question 13

Multiple Choice

Which of the following is true about business units categorized as cash cows in a BCG matrix?

• A) They are low market share units within slow growing industries.
• B) They are high market share units within slow growing industries.
• C) They are high market share units within fast growing industries.
• D) They are high market share units within service industries.
• E) They are low market share units within fast growing industries.

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Definitions:

Profit Margin

A financial metric indicating the percentage of revenue that exceeds a company's costs, commonly used to assess profitability.

Projected Addition

An estimate or forecast of the future increase in a specific metric such as revenue, profits, or assets.

External Financing

Funding obtained from outside of a company, rather than from its own earnings, to support its operations or growth. This can come from debt, equity, or other financial instruments.