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Divestiture for Dummies

noun

pronunciation: dɪ'vɛstɪʧər

What does Divestiture really mean?

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Alright, so "divestiture" is a pretty big word, but don't worry, I'm here to break it down for you. So, when we talk about divestiture, we're actually talking about the act of selling off or getting rid of something. It's like if you have a bunch of toys and you decide to sell some of them at a yard sale because you don't play with them anymore.

But, it's not just for toys, it's also something that companies do. Sometimes, a big company might decide to sell off a part of its business because it's not doing well, or maybe they want to focus on a different area. So, they go through the process of divestiture to separate that part of the business and sell it to someone else.

Another way to think about divestiture is like cleaning out your closet. You know how sometimes you have clothes that you never wear, so you decide to get rid of them to make more space? That's kind of like what divestiture is for companies - they're getting rid of something to make their business more efficient.

So, when we talk about divestiture, we're really talking about the action of selling off or getting rid of something, whether it's toys, clothes, or even a part of a business. And that's divestiture in a nutshell!

Revised and Fact checked by Jane Smith on 2023-11-27 16:53:20

Divestiture In a sentece

Learn how to use Divestiture inside a sentece

  • When a company sells off a part of its business, such as a division or a subsidiary, it is called divestiture.
  • The divestiture of a particular product line can help a company focus on its core business.
  • After the divestiture of its non-performing assets, the company was able to improve its financial position.
  • The divestiture of his old baseball card collection helped him make some extra money.
  • The company's divestiture of its stake in the failing restaurant chain was a strategic move to cut losses.

Divestiture Hypernyms

Words that are more generic than the original word.

Divestiture Category

The domain category to which the original word belongs.