Asset stripping can lead to which of the following outcomes?

• A. Job creation
• B. Enhanced long-term growth
• C. Improved corporate reputation
• D. Job losses and a damaged reputation

Answer: (D)

Asset stripping involves pulling out value by selling off assets, which often leaves the company lean but less able to operate and invest. This tends to cause job losses as assets are shed and operations shrink, and it also harms the company’s reputation because stakeholders see the moves as prioritizing short-term cash over employees and long-term viability. Because of that, the outcome most consistent with asset stripping is job losses and a damaged reputation. The other options imply benefits—more jobs, stronger growth, or a better reputation—that asset stripping typically does not deliver.