A strategy whose objective is to correct major problems in the business through radical changes to current operations is called a _________ strategy.
A) going out of business
B) growth
C) status quo
D) retrenchment

Question

Quizplus · Accepted Answer

Retrenchment strategy, also known as turnaround strategy, is used when a business is experiencing significant problems and needs to make radical changes to its operations to correct them. This strategy may involve downsizing, restructuring, or even selling off parts of the business in order to improve financial performance and competitiveness. Option A (going out of business) is not a strategy but a last resort if a business cannot be revitalized. Option B (growth) is not a corrective strategy but a proactive one that aims to expand a business's operations. Option C (status quo) does not involve any major changes but maintains the current course of the business.

A Strategy Whose Objective Is to Correct Major Problems in the Business