When a company reduces the size of its existing operations,it is called __________.
A) divestiture
B) liquidation
C) downsizing
D) diversification

Question

Quizplus · Accepted Answer

Divestiture refers to selling off a part of the company or division, liquidation means closing down the company and selling off its assets, and diversification means expanding into new products or industries. Downsizing is the only option that specifically refers to reducing the size of existing operations.

When a Company Reduces the Size of Its Existing Operations,it