Which of These Is True About the Cash Cow

question 70

Multiple Choice

Which of these is true about the cash cow?

• A) It generates tremendous profits in a rapidly growing industry.
• B) It has a small market share in a rapidly growing industry.
• C) It has a small market share in a slow growth industry.
• D) It has a large market share in a slow growth industry.
• E) It is generally a dead business that should be divested.

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Definitions:

Focusing Solely

Giving undivided attention or concentration to a single task, objective, or aspect, ignoring distractions or related issues.

Bounded Rationality

Bounded rationality refers to the concept that in decision-making, the ability of individuals to make rational decisions is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make decisions.

Imperfect Information

A situation where all parties in a transaction do not have the same or complete information, often leading to inefficiencies in decision making.

Best Choice

The best choice indicates the most suitable or advantageous option selected from a range of alternatives.