If a USmultinational Corporation Incurs Start-Up Losses from Foreign Operations,which of the of the Following

question 78

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)Both b.and c.

---

Definitions:

Nash Equilibria

Nash Equilibria are concepts in game theory where each player's chosen strategy maximizes their payoff, given the strategies chosen by other players, indicating no incentive to deviate unilaterally.

Maximin Strategy

A decision-making rule used in the face of uncertainty, prioritizing the maximization of the minimum possible payoff.

Credible Threat

A declaration or indication of intended action that is believable and likely enough to influence others' behaviors or decisions.

Warranty

A promise or guarantee made by a seller to a buyer to repair or replace a product that is found to be defective within a specified period.