According to the BCG Matrix ,A Cash Cow

question 106

Multiple Choice

According to the BCG matrix ,a cash cow:

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

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Definitions:

Variable Cost

Expenses that change in proportion to the activity of a business such as production levels or sales volume.

Wages

Compensation received by employees for their labor, typically expressed as an hourly, daily, or piecework rate, or as an annual salary.

Servers

Computers or computer programs that provide data, resources, or services to other computers, known as clients, over a network.

Marginal Revenue

The additional income generated from selling one more unit of a good or service.