what refers to sales of a segment of a company to 3rd party
A.Liquidation
B.Divestiture
C.Turnaround
D.Concentric
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The correct answer for the given question is Divestiture (option B).
- When a company sells some of its assets or some business investments, it is referred to as divestiture.
- This is frequently done by businesses to pay off part of their unpaid loans, cut costs, or reinvest profits.
- Liquidation simply refers to the sale of all assets and the closure of a business.
- When a business recovers from a major setback or financial disaster, it is referred to as a turnaround.
- Concentric expansion is a corporate strategy for expanding its scope by producing and introducing new products to the market.
- As a result, divestiture refers to the selling of a company's section or assets to a third party.
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