Question

Which of the following is true about business units categorized as cash cows in a BCG matrix?

A. They are low market share units within slow growing industries.

B. They are high market share units within slow growing industries.

C. They are high market share units within fast growing industries.

D. They are high market share units within service industries.

E. They are low market share units within fast growing industries.

Answer 1

Cash cows in a BCG matrix are high market share units within slow growing industries that generate significant cash flow with minimal investment.

Step-by-step explanation:

In a BCG matrix, business units categorized as cash cows are high market share units within slow growing industries. They are considered cash cows because they generate a significant amount of cash flow with minimal investment, thanks to their established market dominance. These cash cows typically require limited resources to maintain their market share and profitability.