Divestiture is a type of a __________ strategy.
A) growth
B) global
C) retrenchment
D) stability
E) diversification

Question

Quizplus · Accepted Answer

Divestiture is a strategy where a company sells off a part of their business or discontinues a product line. This is usually done as a retrenchment strategy to focus on the core competencies of the company and eliminate any non-profitable sectors. It is not a growth or diversification strategy as it involves reducing the size and scope of the company. It is also not a stability or global strategy as it involves significant changes in the organization.

Divestiture Is a Type of a __________ Strategy