When a company feels that it is not easy to survive, then it sells its unit or some of its part to survive. This is a kind of ____________ retrenchment.

liquidation

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bankruptcy

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turnaround

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divestment

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Solution

The correct option is D divestment
Divestment is a form of retrenchment strategy used by businesses when they downsize the scope of their business activities. Divestment usually involves eliminating a portion of a business. Firms may elect to sell, close, or spin-off a strategic business unit, major operating division, or product line.

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