If a US Multinational Corporation Incurs Start-Up Losses from Foreign Operations, Which

question 24

Multiple Choice

If a U.S. multinational corporation incurs start-up losses from foreign operations, which of the following organizational forms provide immediate U.S. tax savings from the deduction of the losses?

• A) Operation through a foreign subsidiary
• B) Operation through a foreign branch
• C) Operation through a domestic subsidiary
• D) Operation through a foreign branch and Operation through a domestic subsidiary

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Definitions:

Autocratic Buying Center

A buying center in which one person makes the decision alone, though there may be multiple participants.

Majority Rules

A decision-making principle whereby the option that receives the most votes or support among a group is chosen.

Networking

The act of connecting with other people to exchange information and develop professional or social contacts.

B2B Marketplace

An online platform that connects businesses for the purpose of buying and selling products and services to each other.