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SBUs with dominant shares of slow-growth markets that provide cash to cover the organization's overhead and to invest in other SBUs are referred to as __________.

User Tteguayco
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Final answer:

SBUs with dominant market shares in slow-growth industries that support an organization financially are known as cash cows. These provide crucial backing for other parts of the business that may require investment.

Step-by-step explanation:

SBUs with dominant shares of slow-growth markets that provide cash to cover the organization's overhead and to invest in other SBUs are referred to as cash cows. Cash cows typically generate revenue in excess of their own investment needs, which allows a firm to utilize these excess funds to support other business units within the company that may need investment, be in the growth stages, or require support for other strategic reasons.

Venture capitalists and angel investors play key roles in the funding and growth of companies outside this SBU classification, providing capital in exchange for equity positions within the company. While cash cows provide stable financial support for a company, these investors typically get involved during early-stage development, often when companies are not yet profitable and need significant funding.

User Jire
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