Arc Technology Inc., an American software company, needed to cut costs to remain competitive. The firm laid off about 10 percent of its workforce in 2011 to ensure the viability of the business in future. In this example, Arc Technology Inc. uses which of the following strategies?
A) Divestment
B) Retrenchment
C) Spin-off
D) Liquidation
E) Retracement

Question

Quizplus · Accepted Answer

Retrenchment is a strategy used by companies to reduce costs or scale down operations, often through layoffs, to improve financial stability and ensure future viability.