Incompatible operations can be separated without damaging either or altering stockholders positions through a:
A)sale for cash.
B)spinoff.
C)subsidiary divestiture.
D)breakout.

Question

Quizplus · Accepted Answer

Spinoff involves creating a separate, independent company from the original one in cases of incompatible operations. This allows for the separate management of each entity without affecting the other or altering the stockholders' positions. It is also tax-efficient and can release the value of the separated entities. Therefore, a spinoff is the best choice for separating incompatible operations.

Incompatible Operations Can Be Separated Without Damaging Either or Altering