A company may be sold as a part of its total assets strategy also known as?

The correct choice, identifying the strategy of selling a company as part of its total assets strategy, relates to the concept of "sum of its parts." This term describes an approach where the value of a company is assessed based on the individual worth of its separate divisions or assets. The rationale behind this strategy is that the individual components of a business can sometimes yield a higher total value when sold separately than if the business were sold as a whole.

This perspective often applies in situations where different segments of a company operate in distinct markets or have varying levels of profitability. By selling assets or divisions that have greater standalone value, a company can potentially unlock hidden value for shareholders. This method contrasts with simply selling the entire company as a single entity, which may not capture the full value of its individual components.

In this context, asset liquidation and management buyouts represent fundamentally different concepts. Asset liquidation refers to selling off assets to convert them into cash, typically in distress situations, while a management buyout involves the existing management team acquiring the company, which does not address the asset value strategy directly. Whole company sale implies selling the entire organization without focusing on maximizing the value from individual segments, which does not align with the idea of realizing the value through a sum-of-parts