In complete voluntary liquidations, the sum of the firm’s parts is wor

In complete voluntary liquidations, the sum of the firm’s parts is worth more than the whole, for all of the following reasons EXCEPT:

a. the assets (or divisions) may be worth more in the hands of more competent managers.
b. liquidated assets always sell at a premium to their fair value.
c. the special tax treatment afforded liquidations provides a source of value over and above the firm’s value as a going concern.
d. any diseconomies associated with excessive diversification can be eliminated by piecemeal sale through liquidation.

ANSWER

B