Understanding Cash Cows and Business Cycles

Understanding Cash Cows and Business Cycles

Assessment

Interactive Video

Business

9th - 10th Grade

Hard

Created by

Nancy Jackson

FREE Resource

5 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a 'cash cow' in the context of a business cycle?

A company that is in the early stages of its business cycle

A company that is about to go bankrupt

A new company that requires a lot of cash to grow

A company that consistently generates high profits with low investment

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why do early-stage companies often incur losses?

They invest heavily in infrastructure and growth

They focus on reducing costs

They have no competition

They avoid taking any risks

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What happens to a company as it transitions from a 'cash pig' to a 'cash cow'?

It stops growing and remains stagnant

It goes bankrupt

It starts to incur more losses

It begins to break even and eventually generate profits

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What challenge do mature 'cash cow' companies face?

Their revenue growth potential diminishes

They have no competition

They have too many growth opportunities

They need to invest more in infrastructure

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What might a 'cash cow' company do to sustain its profitability?

Stop all investments

Buy more growth companies

Reduce its workforce

Increase its prices significantly