Which term describes the sale or transfer of a business unit to another company?

Which term describes the sale or transfer of a business unit to another company?

• A. Distance Learning
• B. Domestic Organization
• C. Divestiture
• D. Dot Chart

Answer: (C)

Divestiture is the term for selling or transferring a business unit to another company. In corporate strategy, this move is used when a company wants to focus on its core operations, raise capital, or reduce risk by shedding a unit that doesn’t fit its strategic goals. When a divestiture occurs, HR considerations come into play to manage the transition for employees, coordinate with the buyer, and ensure benefits and employment terms are handled appropriately. The other options don’t describe this action: distance learning refers to delivering education remotely, domestic organization is a broad structural term, and a dot chart is just a type of data visualization.

Divestiture is the term for selling or transferring a business unit to another company. In corporate strategy, this move is used when a company wants to focus on its core operations, raise capital, or reduce risk by shedding a unit that doesn’t fit its strategic goals. When a divestiture occurs, HR considerations come into play to manage the transition for employees, coordinate with the buyer, and ensure benefits and employment terms are handled appropriately. The other options don’t describe this action: distance learning refers to delivering education remotely, domestic organization is a broad structural term, and a dot chart is just a type of data visualization.