When a firm sells a division of the organization, it is utilizing which strategy? A. Divestiture B. Backward integration C. Liquidation D. Horizontal integration E. Retrenchment

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Business

Lucas French

14 January, 08:16

When a firm sells a division of the organization, it is utilizing which strategy? A. Divestiture B. Backward integration C. Liquidation D. Horizontal integration E. Retrenchment

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Answers (1)

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Carlos Huang · Answer 1

A. Divestiture

Explanation:

The term divestiture is determined as the disposition of an asset through the sales and exchange or the closure and is an important means to create the values and for the merger of the companies through the mergers, acquisitions and consolidation procedures. The firms thus sell the division of the organization based on the use of this strategy into different segments and hence creating a set of different characteristics in the market.