When an organization reduces the size of its existing operations, it is called __________.
A) divestiture
B) liquidation
C) downsizing
D) diversification

Question

Quizplus · Accepted Answer

Downsizing refers to reducing the size of existing operations by eliminating jobs, departments, or even entire business units. Divestiture refers to selling off a part of a company, liquidation refers to the process of closing down a company and selling off its assets, and diversification refers to expanding a company's operations into new areas.

When an Organization Reduces the Size of Its Existing Operations