When a Division of an Organization Has a High Relative

question 24

Multiple Choice

When a division of an organization has a high relative market share and is in a fast-growing industry, it is called a

• A) star
• B) cash cow
• C) cat
• D) question mark
• E) dog

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Definitions:

Acquired Company

A company that has been purchased by another entity.

Trading Securities

Marketable securities that a company holds for the purpose of trading in the short term, with the intent of generating profit from price movements.

Fair Value

The estimated market value of an asset or liability, reflecting the price that two willing parties would agree to in an arm's length transaction.

Held-to-maturity

A category for debt securities that a company has the positive intent and ability to hold until maturity, reported at amortized cost.