A. Current market position
B. Product life-cycle
C. Alternate uses for resources
D. The size of the business
✅ The correct answer is option D.
The size of the business is not an issue in selecting a business as a divestment candidate. Divestment is a form of retrenchment strategy used by businesses when they downsize the scope of their business activities. Divestment is a form of retrenchment strategy used by businesses when they downsize the scope of their business activities. Divestment usually involves eliminating a portion of a business. Firms may elect to sell, close, or spin-off a strategic business unit, major operating division, or product line. This move often is the final decision to eliminate unrelated, unprofitable, or unmanageable operations.
The size of the business is not an issue in selecting a business as a divestment candidate. Divestment is a form of retrenchment strategy used by businesses when they downsize the scope of their business activities. Divestment is a form of retrenchment strategy used by businesses when they downsize the scope of their business activities. Divestment usually involves eliminating a portion of a business. Firms may elect to sell, close, or spin-off a strategic business unit, major operating division, or product line. This move often is the final decision to eliminate unrelated, unprofitable, or unmanageable operations.