A Cash Cow Type of Business

Multiple Choice

A cash cow type of business

A) generates unusually high profits and returns on equity investment.
B) is so profitable that it has no long-term debt.
C) generates positive cash flows over and above its internal requirements,thus providing a corporate parent with cash flows that can be used for financing new acquisitions,investing in cash hog businesses,funding share buyback programs,and/or paying dividends.
D) is a business with such a strong competitive advantage that it generates big profits,big returns on investment,and big cash surpluses after dividends are paid.
E) has good strategic fit with a cash hog business.