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

Correct Answer: The size of the business

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.
Bissoy MCQ
#Management #Strategic Management

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