Which of the Following Is True About a Cash Cow

Multiple Choice

Which of the following is true about a cash cow?

A) Cash cows can barely support themselves; in some cases, they actually drain off cash resources generated by other SBUs.
B) An SBU that is a cash cow has a small share of a high-growth market.
C) An SBU that is a cash cow has a large share of a market that is growing only slightly.
D) An SBU that is a cash cow has a high share of a high-growth market and typically needs large amounts of cash to support rapid and significant growth.
E) Cash cows generate large amounts of cash for the organization and are usually segments in which management can make additional investments and earn attractive returns.