Boulder Ltd

question 4

Multiple Choice

Boulder Ltd.is a Canadian corporation which plans to expand internationally.The company has decided to establish a wholly-owned foreign subsidiary corporation in another country.Which of the following statements is incorrect?

• A)The subsidiary will be subject to taxes in the foreign country.
• B)The subsidiary's profits will be included in the Canadian corporation's worldwide income.
• C)Dividends received by the Canadian corporation from the foreign subsidiary are excluded from the Canadian corporation's taxable income.
• D)Dividends received by the Canadian corporation from the foreign subsidiary are most often subject to a withholding tax in the foreign jurisdiction.

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Definitions:

Business Plan

A precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals.