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
Correct Answer: An asset-reduction strategy
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.