Business, 04.03.2020 23:47 Airport12lt

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, 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.

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