Divestment differs from retrenchment in that divestment involves:
A) reducing the size of part of a firm's operations though laying off employees.
B) selling off part of a firm's operations.
C) creating a new company whose stock is owned by investors out of a piece of a bigger company.
D) shutting down portions of a firm's operations, often at a tremendous financial loss.
E) the joining of two similarly sized companies into one.

Question

Quizplus · Accepted Answer

Divestment involves selling off part of a firm's operations, whereas retrenchment typically involves reducing costs or downsizing operations, such as laying off employees.

Divestment Differs from Retrenchment in That Divestment Involves