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Business, 07.04.2020 15:58 NathanaelLopez

A cash cow type of business:

a. is so profitable that it has no long-term debt.

b. 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.

c. generates unusually high profits and returns on equity investment.

d. 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, funding share buyback programs, and/or paying dividends.

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A cash cow type of business:

a. is so profitable that it has no long-term debt.
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