What strategy typically results from a decision to no longer operate a business unit?

The correct answer is divestiture, which refers to the process of selling off or liquidating a business unit or subsidiary. This strategy is often employed when a company decides that the particular business unit is no longer aligned with its overall goals, is underperforming, or does not fit into its core competencies. By divesting, the company can free up resources, reduce financial strain, and refocus its efforts on more profitable areas or core businesses.

In contrast, market development involves expanding into new markets with existing products, which is unrelated to the decision to cease operations of a business unit. Retrenchment focuses on cutting back or reducing the scale of operations to improve financial stability, but it doesn't imply the total exit from a particular business unit. Horizontal diversification refers to expanding into new products or services that are similar to what the company already offers, which again does not pertain to stopping operations altogether.