If Happy Cows, a dairy manufacturer, sells its sour cream division, this is an example of______ .
A)divestiture
B)outsourcing
C)backward integration
D)forward integration

Question

Quizplus · Accepted Answer

Divestiture refers to the act of a company selling off a division or segment of its business. In this case, Happy Cows is selling off its sour cream division, indicating a divestiture. Outsourcing refers to the practice of contracting with an external company for goods or services. Backward integration involves a company acquiring a supplier or manufacturer, while forward integration involves a company acquiring a distributor or retailer.

If Happy Cows, a Dairy Manufacturer, Sells Its Sour Cream