Which of the following best describes a cash cow?

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A cash cow is best described as a product or business unit that generates consistent revenue with minimal investment requirements. This concept is part of the Boston Consulting Group's (BCG) matrix, where cash cows are characterized by their stable income and established market presence, often in industries with low growth.

Cash cows typically have a strong position in a mature market, which allows them to produce a steady stream of cash flow that can be used to fund other business areas, such as questionably promising products or new ventures.

In contrast, other options describe different business scenarios. One option speaks about high growth potential without the need for significant investment, which would instead align more with a 'star' in the BCG matrix. Another choice mentions substantial investment with low returns, indicating a problematic situation often seen in 'dogs' or poorly performing products. The last option describes a rapidly growing market requiring heavy funding, generally characteristic of 'question marks,' where the outcome of investment is uncertain. Therefore, option B accurately captures the essence of a cash cow's role in contributing to a company's financial stability and growth strategy.

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