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Which of these is not an issue in selecting a business as a divestment candidate?

A. Current market position

B. Product life-cycle

C. Alternate uses for resources

D. The size of the business

Answer: Option D

Solution(By Examveda Team)

The size of the business is not an issue in selecting a business as a divestment candidate. Divestment is a form of retrenchment strategy used by businesses when they downsize the scope of their business activities. Divestment is a form of retrenchment strategy used by businesses when they downsize the scope of their business activities. Divestment usually involves eliminating a portion of a business. Firms may elect to sell, close, or spin-off a strategic business unit, major operating division, or product line. This move often is the final decision to eliminate unrelated, unprofitable, or unmanageable operations.

This Question Belongs to Management >> Strategic Management

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