The retrenchment strategy that involves selling off parts of an organization to refocus attention on core business areas is called __________.
A) liquidation
B) downsizing
C) diversification
D) divestiture

Question

Quizplus · Accepted Answer

Divestiture involves the selling off of parts of an organization, such as subsidiaries or product lines, to refocus on core business areas. Liquidation involves the complete shutdown and sale of all assets, while downsizing involves reducing the size of the workforce. Diversification involves expanding into new business areas.

The Retrenchment Strategy That Involves Selling Off Parts of an Organization