DIVESTITURE Meaning and
Definition
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Divestiture refers to the act of selling off or getting rid of assets, divisions, or subsidiaries of a company. It involves divesting or disposing of particular business units or investments as a strategic decision made by an organization. Typically, this occurs when a company decides to focus on its core competencies, streamline operations, or eliminate underperforming or non-essential parts of the business.
The process of divestiture may involve selling shares of a subsidiary, spinning off a separate company, or liquidating certain assets. It is often used as a means to raise capital, reduce debt, or improve overall financial health. Companies may also choose to divest in response to regulatory concerns, antitrust issues, or to comply with government orders.
Divestiture can also occur when a company separates itself from a specific business line or industry due to ethical concerns, social pressure, or reputational risks. In such cases, divestiture is seen as a way to distance the organization from activities that may be deemed unethical, harmful to the environment, or against public interest.
Overall, divestiture is a strategic business decision that usually involves selling off assets, subsidiaries, or divisions, either to improve financial performance, focus on core operations, comply with regulations, or respond to ethical and reputational concerns.
Common Misspellings for DIVESTITURE
- sivestiture
- xivestiture
- civestiture
- fivestiture
- rivestiture
- eivestiture
- duvestiture
- djvestiture
- dkvestiture
- dovestiture
- d9vestiture
- d8vestiture
- dicestiture
- dibestiture
- digestiture
- difestiture
- divwstiture
- divsstiture
- divesiture
- divestture
- divesture
Etymology of DIVESTITURE
The word "divestiture" originates from the Latin term "divestitus", which is the past participle of the verb "divestire". "Divestire" is a combination of two Latin words: "dis", meaning "away", and "vestire", meaning "to clothe" or "to dress". When these elements are put together, "divestire" means "to undress" or "to deprive of clothing". Over time, the term evolved figuratively to mean "to deprive or rid oneself of something". In the context of business and finance, "divestiture" refers to the act of selling off or disposing of assets, businesses, or subsidiaries.
Similar spelling word for DIVESTITURE
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