Retrenchment is:

A. When a company experiences declining profits and makes cutbacks to improve efficiency

B. When a company adopts a new strategic position for a product or service

C. The sale of the complete business, either as a single going concern or piecemeal to different buyers or sometimes by auctioning the assets

D. ely to take place when an organization lacks a key success factor for a particular market

Answer: Option A

Solution(By Examveda Team)

Retrenchment is when a company experiences declining profits and makes cutbacks to improve efficiency. Retrenchment is the termination of an employee by an employer for reasons other than a punishment meted out by disciplinary action. Employees terminated in such a manner are financially compensated by the employer.