A Cash Cow, in the BCG Framework, Refers to a Business

question 76

Multiple Choice

A Cash Cow, in the BCG framework, refers to a business that has

• A)high market growth and relatively high market share.
• B)relatively low market share and low market growth.
• C)relatively low market share and high market growth.
• D)low market growth and relatively high market share.

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Definitions:

Net Profit Margin

A financial metric that measures how much of every dollar earned in revenue is translated into profit after all expenses are deducted.

After-tax Profit

The amount of net income left over after all taxes have been deducted from total revenues.

Inventory Turnover

A measure of how many times a company’s inventory is sold and replaced over a period, indicating efficiency in inventory management.

Cash-to-cash Cycle

The time duration it takes for a company to convert its investments in inventory and other resources into cash flows from sales.