Cash Cow

Tax Glossary Definition

Cash Cow

Cash Cow – A cash cow is a product line, business segment, or subsidiary that produces steady and significant cash inflows over time, requiring minimal ongoing investment. Such units typically enjoy a strong market position or loyal customer base, allowing them to fund other areas of the company’s operations. Example: A long-established beverage brand with consistent sales and limited advertising needs often serves as a cash cow for its parent corporation.

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