Divestiture Means Selling of a Business Unit for the Cash

question 69

True/False

Divestiture means selling of a business unit for the cash value of the assets, thus terminating its existence.

---

Definitions:

Net Operating Income

An evaluation of a business's core operating income, omitting the effects of interest and tax expenses.

Price Reduction

A decrease in the selling price of a product or service, often to stimulate demand or respond to competition.

Sales Forecast

A projection of future sales revenue, based on historical data, market analysis, and other factors.

Unit Sales

Unit Sales refer to the quantity of individual items or products sold within a specific period, used as a measure of business performance.