What does selling a portion of a business to avoid redundancy refer to?

The concept of selling a portion of a business to avoid redundancy primarily relates to divestiture. This strategic action allows a company to streamline its operations by disposing of non-core assets or underperforming business segments. By doing so, businesses can focus more on their main operations, allocate resources more efficiently, and improve overall performance. This process helps in eliminating overlap in services or products that do not add significant value, ultimately leading to a leaner, more efficient operation.

On the other hand, asset liquidation typically involves selling off all assets of a business, usually due to financial difficulties, whereas going concern refers to the ongoing nature of a business, suggesting that it will continue operating in the foreseeable future. A stock buyback involves a company purchasing its own shares to reduce the number of shares available, primarily to increase shareholder value, rather than focusing on divesting business portions.