The motive for divestiture is often to get rid of a product line in order to generate cash for expansion of other product lines.

Question

Quizplus · Accepted Answer

Divestiture involves selling off or spinning off a subsidiary, business unit, or product line to generate cash or streamline operations. This can free up financial resources for investment in other areas, such as research and development, marketing, or acquisitions. Therefore, the statement that the motive for divestiture is often to get rid of a product line in order to generate cash for expansion of other product lines is true.

The Motive for Divestiture Is Often to Get Rid of a Product