Divestment is what kind of strategy?

A. An asset-reduction strategy

B. A weakness-reduction strategy

C. A product-reduction strategy

D. A cost-reduction strategy

Answer: Option A

Solution(By Examveda Team)

Divestment is an asset-reduction strategy. Divestment is the process of selling subsidiary assets, investments or divisions in order to maximize the value of the parent company. Divestment typically takes a form of spin-off, equity carve-out or direct sale of assets, and the most common reason for deploying this strategy is to eliminate non-core businesses.