Vidyalelo
Management · Q8

Strategic Management

Graduate and Post Graduate · Management · question 8

Q8

Selling all of a companys assets in parts for their tangible worth is called:

A.
Divestiture
B.
Concentric Diversification
C.
Liquidation
Answer
D.
Unrelated integration

Answer: Option C

Solution

Answer: Option C
Solution:
Selling all of a companys assets in parts for their tangible worth is called Liquidation. Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due.