Unlike business bankruptcy and business failure, divestiture is often undertaken for positive motives such as to generate cash for the expansion of product lines, to get rid of poorly performing operations, to streamline the company, or to restructure the business that is consistent with the firm's strategic goals.

Question

Quizplus · Accepted Answer

Divestiture is often seen as a strategic move to improve a company's financial or operational health, rather than a sign of failure or bankruptcy.

Unlike Business Bankruptcy and Business Failure, Divestiture Is Often Undertaken