Which of the Following Is the Best Definition of Divestiture

question 74

Multiple Choice

Which of the following is the best definition of divestiture?

• A) The sale of stock in a wholly owned subsidiary via an IPO.
• B) A targeted share repurchase method.
• C) The sale of assets, operations, divisions, and/or segments of a business to a third party.
• D) Investment in more than one asset; returns do not move proportionally in the same direction at the same time, thus reducing risk.
• E) Rules and practices relating to how corporations are governed by management, directors, and shareholders.

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Definitions:

Resale Products

Goods purchased with the intention of selling them to another party, often at a markup, without significant modification.

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type, often used as inputs in the production of other goods or services.

Wares

Products or goods that are available for sale.

Consumer Reports

A nonprofit organization that provides reviews and comparisons of consumer products and services based on testing and research.