When choosing to establish a foreign branch or subsidiary, a prime factor in the U.S. company's decision is:

Question

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both A and C are important factors to consider when establishing a foreign branch or subsidiary. The tax rates applicable to different forms of organization can have a significant impact on the profitability and overall success of the venture. Additionally, it is important to consider whether the foreign taxes paid will be creditable taxes for U.S. tax purposes to minimize double taxation. The investment tax credit given by the foreign country may also be a consideration, but it is not as critical as the other factors.

When Choosing to Establish a Foreign Branch or Subsidiary, a Prime