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:

Factor Of Production

An essential input to the production process, such as labor, capital, land, and entrepreneurship.

Marginal Productivities

The additional output that is produced by using one more unit of a particular input, ceteris paribus.

Earnings Alteration

Changes or modifications to the amount of money earned by an individual or company.

Rental Price

The amount of money paid periodically for the use of an asset, property, or piece of equipment.