What factors must be weighed to determine the viability of divesting an entire product line?

What will be an ideal response?


Traditionally, companies have resisted divestment for several reasons, such as these: divestment admits defeat in a previous decision, it necessitates changes in personnel, and it is contrary to the business ethic of expansion. These arguments still carry some weight. However, various possibilities are opened up by divestment, such as the fact that it releases assets for use in other parts of the business where opportunities are growing and it may improve the ROI. Thus, the divestment of the entire product line has become a viable strategic alternative.

Business

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Answer the following statement true (T) or false (F)

Business