A Foreign Branch Is

question 20

Multiple Choice

A foreign branch is:

• A) an extension of the parent and is not an independently incorporated firm separate from the parent.
• B) an affiliate organization of the MNC that is independently incorporated in the foreign country, and one in which the U.S. MNC owns at least 10 percent of the voting equity stock.
• C) either a minority foreign subsidiary (an uncontrolled foreign corporation) or a controlled foreign corporation.
• D) None of these.

---

Definitions:

Treaty

A formal and legally binding agreement between two or more sovereign states, typically concerning peace, trade, alliances, or other international relations.

Canadian Citizen

An individual who legally belongs to Canada, either by birth or through the process of naturalization.

Charter

A formal document establishing a city, organization, university, or other entity, detailing its rights, privileges, and purposes.

Procedural Law

The body of law that prescribes the methods and processes for enforcing rights and obtaining redress for wrongs within the legal system.