p Discuss THREE types of defensive strategies. - Study room Q&A
Welcome to Study Room, where you can ask questions and receive answers from other members of the community.

Discuss THREE types of defensive strategies.

Solved 1 Answers 145 Views Business Studies

1 Answer

Best answer


  • The business disposes/sells some assets/divisions that are no longer profitable/ productive.
  • Businesses may sell off divisions/product lines with slow growth potential.
  • Unproductive assets are sold to pay off debts/reduce operational costs.
  • Process used to withdraw its investment in another business.
  • Aims at acquiring additional capital


  • Terminating the employment contracts of employees for operational reasons.
  • Decreasing the number of product lines/Closing certain departments may result in some workers becoming redundant.


  • All assets are sold to pay creditors due to a lack of capital/cash flow.
  • Selling the entire business in order to pay all liabilities/close down the business.
  • Creditors may apply for forced liquidation in order to have their claims settled.
  • Companies in financial difficulty may apply for business rescue to avoid liquidation.
answered by Master (644k points)