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Which of the following is not a market exit strategy?

a. divestiture
b. liquidation
c. status quo
d. harvesting

User Charles Jr
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1 Answer

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Final answer:

The term 'status quo' is not a market exit strategy; it refers to maintaining the existing state of the business. In contrast, divestiture, liquidation, and harvesting are all legitimate strategies that companies may employ when planning to exit the market.

Step-by-step explanation:

Status quo. This option does not represent a market exit strategy. Market exit strategies are plans and procedures that business owners and managers develop to close down or sell their business.

  • Divestiture involves selling off portions of the company, such as a division or subsidiary.
  • Liquidation means selling all assets of the business and ceasing operations.
  • Harvesting involves reducing investment in a company and extracting as much value as possible before closing the business.
  • Status quo simply means maintaining the current state of affairs, with no implications of exiting the market.

Options a, b, and d are all actions that are part of exiting a market, whereas maintaining the status quo is not concerned with exit but rather continuation.

A market exit strategy is a plan or method used by a company to leave a particular market. Divestiture, liquidation, and harvesting are all common market exit strategies.

However, status quo refers to maintaining the current situation or not making any changes. It is not a market exit strategy because it does not involve leaving the market.

User Barbakini
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