GenEx Group Manufactures a Variety of Products for Different Markets

question 51

Multiple Choice

GenEx Group manufactures a variety of products for different markets. One of its SBUs, GenEx Textiles, is one of its leading revenue generators. GenEx Textiles is the leading player in the market for textiles, far ahead of its competitors. However, the parent company has realized that growth prospects in the textile industry are limited. The company has already exploited the market to the fullest and sustained growth in the future is unlikely. In fact, a substantial amount of the revenue generated from this textile business is used to fund other SBUs of the parent company. GenEx Textiles is an example of a ________ for the GenEx Group.

• A) star
• B) dog
• C) cash cow
• D) question mark
• E) cost-leader

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Definitions:

Void Agreement

A contract or agreement that is null and has no legal effect from the beginning due to illegal terms or conditions violating legal statutes.

Regulatory Licensing Statute

Legislation that mandates individuals or entities to obtain permits or licenses in order to engage in certain activities, ensuring adherence to standards and regulations.

Revenue Raising License

A type of license that generates income for the government, often through fees charged for the license.

Contract Law

This branch of law deals with the formation, interpretation, and enforcement of contracts between parties.