A large company sells some of its business units to help cut costs,bolster its share price and diversify its business interest.This is an example of a firm employing a(n):
A)exit strategy.
B)pricing strategy.
C)distribution strategy.
D)promotion strategy.

Question

Quizplus · Accepted Answer

An exit strategy refers to a planned approach used by a company or an investor to divest from a business unit, asset or investment. This strategy is often used to cut costs, reduce debt or improve the overall performance of a company. In this case, the company is selling business units to help cut costs, which makes it an exit strategy. Pricing strategy refers to the approach used by a company to set the price of its products or services. Distribution strategy refers to how a company distributes its products or services to consumers. Promotion strategy refers to the approach used by companies to promote their products or services to potential customers.

A Large Company Sells Some of Its Business Units to Help