Which strategy would be effective when the stockholders of a firm can minimize their losses by selling the organization's assets?
A)Differentiation
B)Diversification
C)Liquidation
D)Integration
E)Cost leadership

Question

Quizplus · Accepted Answer

Liquidation involves selling off the assets of a firm in order to pay off its debts and ultimately shut down the business. This would be the most effective strategy for stockholders who are looking to minimize their losses and get some form of return on their investment. Differentiation, diversification, integration, and cost leadership are all strategies that focus on improving the performance and competitiveness of a company, but they do not directly address the situation of stockholders seeking to minimize losses through asset sale.

Which Strategy Would Be Effective When the Stockholders of a Firm