Firms That Seek to Scale Down Their Operations Are Following

question 82

Multiple Choice

Firms that seek to scale down their operations are following a(n) :

• A)concentration strategy.
• B)internal growth strategy.
• C)external growth strategy.
• D)divestment strategy.

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Definitions:

Agency Relationship

A legal arrangement in which one party, the agent, is authorized to act on behalf of another, the principal, in business transactions.

Liable

Bound by law or duty.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights.

Negligent Hiring

A legal claim made against an employer for hiring someone who they knew, or should have known, was likely to behave in a dangerous or harmful manner.