PV$,$ Inc. transferred the operating assets of one of its business divisions into

newly incorporated SV$,$ Inc. in exchange for $100$ percent of SV$\text{'}$s stock. PV$\text{'}$s

adjusted basis in the operating assets was $$4$ million, and its FMV was $$10$

million.

Discuss the business reasons why a parent corporation like PV operates a

business through a subsidiary like SV$.$