Financial Resource Fits - Cash Hogs V/S Cash Cows
What are the Financial Resources?
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Financial Resource Fits: Cash Hogs V/S Cash Cows:
Many businesses have many cash flow and investment characteristics. For example, business units in quickly growing industries are frequently cash hogs – the annual cash flows they are able to produce from internal operations are not large enough to fund their expansion. Business units with leading market situations in mature industries may be cash cows – businesses that produce substantial cash surpluses over what is required for capital reinvestment and competitive exercises to maintain their current market situation.
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