The selling of some of a firm's assets is called ________.
A) leverage buyout
B) consolidation
C) reverse merger
D) divestiture

Question

Quizplus · Accepted Answer

Divestiture refers to the process of selling or disposing of a company's assets, such as a subsidiary or division. This can be done to improve the financial performance of the firm, streamline operations, or refocus on core business activities. A leverage buyout involves acquiring a company using borrowed funds, consolidation refers to the combination of two or more firms into a single entity, and a reverse merger is a type of merger in which a private company acquires a public company to become publicly traded.

The Selling of Some of a Firm's Assets Is Called