Which of the Following Is NOT a Retrenchment Strategy

question 36

Multiple Choice

Which of the following is NOT a retrenchment strategy?

• A) Diversification
• B) Liquidation
• C) Restructuring
• D) Divestiture

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Definitions:

Stock Repurchase

A company's buying back of its own shares from the marketplace, which can reduce the number of outstanding shares and potentially increase the stock value.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

Earnings Per Share

A company's profit divided by the outstanding shares of its common stock, showing the portion of a company's profit allocated to each share of stock.

Stock Dividends

A form of dividend payment made by a corporation to its shareholders in additional shares rather than cash, affecting the company's stock price and equity structure.