Defensive Strategies 30 March 2023 1 Min Read Last Update: 11 April 2023 Quiz Time Welcome to Defensive Strategies Quiz You can practice as many times as you want until you get all the answers 100% right. Let's get Started Which of the following is an example of divestiture/divestment? Closing unprofitable business units Cutting back on business activities and reducing costs to improve profitability Selling off a business unit or asset that is not performing well Selling off all of a company's assets and shutting down operations Which of the following is an example of liquidation? Cutting back on business activities and reducing costs to improve profitability Selling off non-core assets Selling off a business unit or asset that is not performing well or is no longer a core part of the company's operations Selling off all of a company's assets and shutting down operations What are the potential drawbacks of retrenchment as a defensive strategy? Job losses and damage to the company's reputation Loss of revenue and market share of the company Inability to meet financial obligations of the company None of the above What is a defensive strategy? A set of actions taken by a company to increase its market share A set of actions taken by a company to reduce its exposure to risk and protect itself from potential losses A set of actions taken by a company to increase its revenue A set of actions taken by a company to expand into new markets Why are defensive strategies important for companies? To increase their market share while protecting themselves from potential losses To increase their revenue To reduce their exposure to risk and protect themselves from potential losses To expand into new markets How can divestiture/divestment help a company? By raising cash and reducing debt By increasing revenue and market share By improving profitability By reducing exposure to risk 1 out of 6 Time is Up! Time's up Like what you read? Subscribe to our Newsletter Submit Subscribe to our email newsletter to get the latest posts delivered right to your email.