What does 'divestiture' involve?

Divestiture refers specifically to the process of selling off subsidiaries, business units, or assets that are not performing well or no longer fit within a company's strategic direction. This action is typically undertaken to improve the overall efficiency and profitability of the parent organization. By divesting underperforming assets, a company can reallocate financial resources, focus on its core operations, and enhance shareholder value.

In contrast, the other options describe different business activities. The acquisition of core business assets involves purchasing important or essential components to strengthen a business's market position. Restructuring corporate governance pertains to changing the system and processes that direct and control an organization, often for compliance, oversight, or efficiency improvements. Investing in new business ventures involves allocating resources to create or enter new markets, which is the opposite of divestiture. Thus, the process of divestiture is specifically aligned with the sale of underperforming assets, making that option the correct one.