Separating a company's online operations into a new company makes sense in each of the following situations except A) when the volume of anticipated e-business is large. B) when the subsidiary can be created without dependence on current operations and legacy systems. C) when the company is unable to form new alliances, attract new talent, or raise additional funding. D) when a new business model needs to be developed apart from the constraints of current operation.

Question

Quizplus · Accepted Answer

If a company is unable to form new alliances, attract new talent, or raise additional funding, it may not have the necessary resources to successfully create a new subsidiary. In this situation, it may make more sense for the company to maintain its current online operations rather than risk failure with a new company. The other three options provide valid reasons for separating a company's online operations into a new company.

Separating a Company's Online Operations into a New Company Makes