Which strategy would be effective when the stockholders of a firm can minimize their losses by selling the organization's assets?
A) Integration
B) Differentiation
C) Diversification
D) Cost leadership
E) Liquidation

Question

Quizplus · Accepted Answer

Liquidation refers to the process of selling off a company's assets to pay off its debts and distribute the remaining funds to shareholders. If the stockholders of a firm can minimize their losses by selling the organization's assets, liquidation would be the most effective strategy. In this way, the stockholders can recover as much value as possible from their investment before the company ceases to exist. The other options (integration, differentiation, diversification, and cost leadership) are not relevant in this scenario.

Which Strategy Would Be Effective When the Stockholders of a Firm