GenEx Group Manufactures a Variety of Products for Different Markets

question 72

Multiple Choice

GenEx Group manufactures a variety of products for different markets.One of its SBUs,GenEx Textiles,is one of its leading revenue generators.GenEx Textiles is the leading player in the market for textiles.However,the parent company has realized that growth prospects in the textile industry is limited.The company has already exploited the market to the fullest and sustained growth in the future is unlikely.In fact,a substantial amount of the revenue generated from this textile business is used to fund other SBUs of the parent company.GenEx Textiles is an example of a ________ for the GenEx Group.

• A)star
• B)dog
• C)cash cow
• D)question mark
• E)cost-leader

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Definitions:

Greenmail

A situation where a company pays a premium to buy back its own shares from a corporate raider to prevent a hostile takeover.

Outstanding Stock

The total shares of a corporation's stock that have been issued and are in the hands of the public and company officers.

Unfriendly Takeover

A corporate acquisition or merger that is carried out against the wishes of the target company's management and board of directors.

Strategic Alliance

Agreement between firms to cooperate in pursuit of a joint goal.