A management strategy used to reduce the scale and scope of a business to improve its financial performance is
A) divestiture.
B) downsizing.
C) acquisition.
D) merger.

Question

Quizplus · Accepted Answer

Downsizing is the management strategy of reducing the scale and scope of a business by eliminating unprofitable or non-core operations, reducing workforce size, and cutting costs. This helps improve financial performance by reducing expenses and streamlining operations. Divestiture, acquisition, and merger are all strategies for changing the ownership structure of a business, but they do not necessarily involve reducing the scale or scope of operations.

A Management Strategy Used to Reduce the Scale and Scope