Divestment is best described as

• A. Selling off part of an organization, such as a subsidiary or brand
• B. Merging two brands to form a new entity
• C. Centralizing all assets under a single brand
• D. Expanding by acquiring another company

Answer: (A)

Divestment means shedding a part of the business that no longer fits the strategy—selling off a subsidiary or a brand is the classic example. This move is used to raise funds, reduce risk, or refocus on what the business does best. The option that describes selling off part of the organization fits perfectly because it captures the action of exiting a component of the business. In contrast, merging two brands is about combining assets, centralizing assets means pulling everything under one umbrella, and expanding by acquiring is about growing by purchasing another company. So selling off part of the organization best captures the idea of divestment.