The key point in the concept of a "cash cow" developed by the Boston Consulting Group is the point that product being a "cash cow" allows a company to (a) Eliminate products that are "dog" (b) Keep on investing on the production capacity needed to keep a high market share in the market segment of the cash cow (c) Prosper through its high brand awareness and reputation (d) Be less reliant on debt and new equity issuance to sustain investments in innovation on products that are "question marks" or "stars"

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The key point in the concept of a "cash cow" developed by the Boston Consulting Group is the
point that product being a "cash cow" allows a company to
(a) Eliminate products that are "dog"
(b) Keep on investing on the production capacity needed to keep a high market share in the
market segment of the cash cow
(c) Prosper through its high brand awareness and reputation
(d) Be less reliant on debt and new equity issuance to sustain investments in innovation on
products that are "question marks" or "stars"
Transcribed Image Text:The key point in the concept of a "cash cow" developed by the Boston Consulting Group is the point that product being a "cash cow" allows a company to (a) Eliminate products that are "dog" (b) Keep on investing on the production capacity needed to keep a high market share in the market segment of the cash cow (c) Prosper through its high brand awareness and reputation (d) Be less reliant on debt and new equity issuance to sustain investments in innovation on products that are "question marks" or "stars"
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