"Divestiture is normally used to mobilize resources for core business or businesses of the company by realizing value of non-core business assets". Comment on the statement highlighting the reasons for Divestitures.

Divestiture means selling or disposal of assets of the company or any of its business undertakings/divisions, usually for cash (or for a combination of cash and debt) and not against equity shares to achieve a desired objective, such as greater liquidity or reduced debt burden. Divestiture is normally used to mobilize resources for core business or businesses of the company by realizing value of non-core business assets. Reasons for Divestitures Huge divisional losses Continuous negative cash flows from a particular division Difficulty in integrating the business within the company Unable to meet the competition Better alternatives of investment Lack of technological upgradations due to non-affordability Lack of integration between the divisions