Which term refers to an operation that sells assets or ceases operations?

The term that best refers to an operation selling assets or ceasing operations is divestiture. Divestiture is a strategic decision where a company sells off certain assets or business units as a way to refocus its operations, streamline its business, or raise capital. This can happen for a variety of reasons, including financial distress, a desire to exit a particular market, or an effort to improve overall profitability.

In contrast, while bankruptcy is a legal state that can occur when a company cannot meet its financial obligations, it is not specifically about selling assets; rather, it involves a formal process of managing debt. Turnaround refers to efforts made to restore a struggling business to profitability, focusing instead on improving operations rather than ceasing them. Vertical integration involves either acquiring or merging with suppliers or distributors to control more of the supply chain, which does not align with the context of selling assets or ceasing operations.