When a company decides to exit an industry by selling off its business assets to another company, it is said to be using a(n) _____ strategy.
A) market penetration
B) divestment
C) niche
D) downsizing
E) outsourcing

Question

When a company decides to exit an industry by selling off its business assets to another company, it is said to be using a(n) _____ strategy.
A) market penetration
B) divestment 
C) niche
D) downsizing 
E) outsourcing

Quizplus · Accepted Answer

Divestment refers to the process of selling off business assets or product lines, which is an exit strategy typically used by companies when they want to leave an industry. Market penetration refers to increasing market share through aggressive marketing strategies, niche strategies are about serving a specific target market, downsizing is about reducing the size of the company, and outsourcing is about contracting out business functions to third-party vendors.

When a Company Decides to Exit an Industry by Selling