CA Inter P6 · Chapter 13 · Question 10 of 11
In the BCG growth-share matrix, a business unit with a high relative market share in a low-growth market is classified as a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Cash cow
Explanation
The BCG matrix classifies units by market growth rate and relative market share. Stars have high share and high growth, cash cows have high share and low growth, question marks have low share and high growth, and dogs have low share and low growth. Cash cows generate surplus cash that can fund stars and selected question marks.
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