
Understanding Cash Cows and Business Cycles

Interactive Video
•
Business
•
9th - 10th Grade
•
Hard
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
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