Divestment Differs from Retrenchment in That Divestment Involves

question 82

Multiple Choice

Divestment differs from retrenchment in that divestment involves:

• A) reducing the size of part of a firm's operations though laying off employees.
• B) selling off part of a firm's operations.
• C) creating a new company whose stock is owned by investors out of a piece of a bigger company.
• D) shutting down portions of a firm's operations, often at a tremendous financial loss.
• E) the joining of two similarly sized companies into one.

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Definitions:

Cognition Analysis

The examination and study of mental processes including perception, thinking, memory, and judgment.

Technical Analysis

A methodology for forecasting the direction of prices through the study of past market data, primarily price and volume.

Statistical Analysis

The process of collecting, reviewing, and interpreting data to discover patterns and significance in the collected information.

Positive Reinforcement

A concept in behavioral psychology where the introduction of a desirable or pleasant stimulus after a behavior increases the likelihood of that behavior occurring in the future.