Methods of divestiture include the sale of a product line to another firm, the sale of a unit to existing management, spin-offs, and the liquidation of assets.

Question

Quizplus · Accepted Answer

This statement is true. Divestiture refers to the process of selling or disposing of assets, business units or subsidiaries by a company in order to streamline its operations or reduce its debt. Methods of divestiture can include selling a product line to another firm, selling a unit to existing management, spin-offs (creating a separate company for the divested business) and liquidation of assets.

Methods of Divestiture Include the Sale of a Product Line