The Retrenchment Strategy That Calls for Selling Off Part of the Organization

question 14

Multiple Choice

The retrenchment strategy that calls for selling off part of the organization is called __________.

• A) liquidation
• B) downsizing
• C) diversification
• D) divestiture

---

Definitions:

Compounded Quarterly

A method of calculating interest where the interest earned each quarter is added to the principal, thereby increasing the amount on which subsequent interest is calculated.

Interest Rate

The percentage of a loan amount that is applied as interest for the borrower, usually shown as an annual rate of the remaining loan balance.

Present Value

The present worth of a future amount of money or series of cash flows when a particular return rate is applied.

Semiannually

Occurring twice a year, typically every six months, often used in the context of interest or dividend payment schedules or reporting periods.