Which of the following is a restructuring strategy used by businesses?

A turnaround is indeed a restructuring strategy utilized by businesses, particularly when they are facing financial difficulties or declining performance. This approach involves making significant changes to the organization’s operations, management, or direction to improve its financial health and overall viability. The aim of a turnaround strategy is to stabilize the business by addressing the root causes of its problems, which may include optimizing costs, revitalizing management, improving product offerings, or reorienting marketing strategies. Successful turnarounds can lead to a renewed focus and higher efficiency, and they often involve taking decisive actions to either reposition the business in the market or streamline operations.

In contrast, expansion, franchising, and market penetration are more growth-oriented strategies rather than restructuring strategies. Expansion typically involves scaling operations to grow market share or geographic reach, while franchising allows a business to grow by granting licenses to others to operate using its brand. Market penetration is focused on increasing the share of existing markets, often through promotional activities or price adjustments, rather than restructuring the business infrastructure to address underlying challenges. Thus, a turnaround is specifically aligned with the concept of restructuring to enhance a company's performance.