What is the primary purpose of asset stripping?

Asset stripping primarily involves acquiring a company and then selling off its assets individually for profit. The main aim is to maximize financial gain by identifying undervalued or unneeded assets within the target company—not to enhance the company’s operational capacity or improve its overall market value.

When a business undergoes asset stripping, it is often a strategic move made by investors or acquiring firms to quickly recoup their investment or to realize cash flow by divesting valuable assets. This process can lead to significant short-term financial benefits, but it often comes at the expense of the company's long-term viability and can negatively impact employees, operational continuity, and the remaining business value.

The other options relate to motives that are not aligned with the typical goals of asset stripping. For instance, improving overall company value or maintaining business operations does not inherently relate to selling off individual assets for profit in the same way. Additionally, enhancing employee job security is not a focus in asset stripping scenarios, as such actions often lead to downsizing or restructuring that can compromise job stability.