Scenario - SS.com Faced with Rapidly Growing Business, Swift Stocks, Inc., a Stocks

question 97

Multiple Choice

Scenario - SS.com
Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an on-line stock investment and trading subsidiary, SS.com, where investors can trade stocks at the lowest rates in the industry. The .com subsidiary has less than one percent market share but it faces a very high business growth rate. In the brokerage industry the competition is fierce and all players are cutting their on-line commission rates.
-SS.com subsidiary for Swift Stocks can be classified as a _____.

• A) cash cow
• B) dog
• C) star
• D) question mark
• E) stuck in the middle business

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Definitions:

Consumed

Used up or exhausted, particularly in reference to resources or goods.

Liability

A financial obligation or amount owed by a business to creditors, typically reflected on the balance sheet.

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements, which may not coincide with the calendar year.

Supplies Account

An account used to track the cost of supplies bought and used by a business over a period.