Which of the Following Is an Advantage of Conducting Foreign

question 13

Multiple Choice

Which of the following is an advantage of conducting foreign operations through a branch?

• A)Foreign branch losses can offset domestic income.
• B)Foreign branch income is taxed at a lower rate than domestic income.
• C)The parent's assets are protected from foreign branch creditors.
• D)Foreign branch income is taxed by both the United States and the host country.

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Definitions:

Cost-Minimizing Firm

A business entity that seeks to achieve production at the lowest possible cost.

Production Function

A mathematical representation that identifies the relationship between input resources and the output of goods or services for a business or economy.

Cookie Factory

A specific type of manufacturing plant or production facility where cookies are produced on a large scale.

Production Function

Depicts how maximum output is achieved with given sets of inputs, reflecting the efficiency of production processes.