The Difference Between a "Cash Cow" Business and a "Cash

question 35

Multiple Choice

The difference between a "cash cow" business and a "cash hog" business is that

• A) a cash cow business is making money whereas a cash hog business is losing money.
• B) a cash cow business generates enough profits to pay off long-term debt whereas a cash hog business does not.
• C) a cash cow business generates positive retained earnings whereas a cash hog business produces negative retained earnings.
• D) a cash cow business produces large internal cash flows over and above what is needed to build and maintain the business whereas the internal cash flows of a cash hog business are too small to fully fund its operating needs and capital requirements.
• E) a cash cow business generates very large increases in sales revenues whereas a cash hog business has declining sales revenues and chronic deficiencies of working capital.

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Spreading false accusations regarding someone that negatively affect their standing.

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