Final answer:
The growth-share matrix defines four types of SBUs: Cash cows are low-growth, high-share businesses or products .Option a
Step-by-step explanation:
The growth-share matrix, a tool commonly used in corporate strategy, classifies Strategic Business Units (SBUs) into four categories based on market growth and market share.
Among these, Cash cows represent SBUs that are characterized by low-growth, high-share businesses or products. These are established and successful products or business units that generate more cash than they consume, thus they are seen as steady providers of profit and cash flow.
Cash cows are important because they provide the financial resources that a company can use to invest in other business units, pay dividends, reduce debt, or reinvest in their own growth or operations. This concept is particularly important for managers and investors to understand when making decisions about where to allocate resources. Option a