If a business is sold for its tangible asset value,the strategy is one of:
A) Divestiture
B) Conglomeration
C) Liquidation
D) Diversification

Question

Quizplus · Accepted Answer

When a business is sold for its tangible asset value, it means that the business is no longer profitable and it is not able to generate sufficient revenue to cover its expenses. This type of strategy is called liquidation, which involves selling off all the assets of the business to pay off creditors and investors. Divestiture refers to the sale of a division or subsidiary of a company, while conglomerate refers to the merger of two or more companies with different business lines. Diversification is a strategy of expanding into new markets or products to reduce risk. However, none of these strategies apply when a business is sold for its tangible asset value as it implies the business is no longer a going concern.

If a Business Is Sold for Its Tangible Asset Value,the