Multiple Choice
_____ A reason for using the subsidiary form of organization when expanding instead of the branch form of organization is
A) It better limits the ability of foreign taxing authorities to examine the books and records of the domestic operation.
B) It better insulates legally the existing operation from the new operation.
C) A foreign unit's earnings are not taxed in the United States until remitted to the domestic unit.
D) All of the above.
E) None of the above.
Correct Answer:

Verified
Correct Answer:
Verified
Q46: _ A control feature in a decentralized
Q47: To prevent loss of patent protection, a
Q48: To limit an existing operation's potential loss
Q49: The relationship between (a) the headquarters of
Q50: It is inappropriate to consolidate a subsidiary
Q52: The two manners of reporting a subsidiary's
Q53: Income taxes pertaining to branch earnings are
Q54: Home office allocations to a branch are
Q55: Branch fixed assets can be carried on
Q56: _ A valid reason for not consolidating