Question

divestment is what kind of strategy 1. an asset-reduction strategy 2. a weakness-reduction strategy 3. a product-reduction strategy 4. a cost-reduction strategy

Answer 1

Answer:

Answer: (A) Asset-reduction strategy

Divestment strategy is known as the asset-reduction strategy which means the when a company’s asset will be reduced or when some business is sold to other party and it is just opposite to investment. It is also known as retrenchment strategy which means when a business comes to an end and its scope starts decreasing. When you start selling an asset to other company you will be go in divestment mode or divesture mode.