When a company decides to exit an industry by selling its business assets to another company, it is said to be using which of the following strategies?
A) Market penetration
B) Divestment
C) Niche
D) Downsizing
E) Outsourcing

Question

Quizplus · Accepted Answer

Divestment is the strategy of selling or disposing of a company’s assets, such as a subsidiary or business unit, to another company. This allows the company to exit an industry, focus on core competencies, and raise capital. Market penetration, niche, downsizing, and outsourcing all refer to different strategies, but they do not involve selling or disposing of business assets to exit an industry.

When a Company Decides to Exit an Industry by Selling