_____ A reason for using the subsidiary form of organization when expanding instead of the branch form of organization is
A) It better limits the ability of foreign taxing authorities to examine the books and records of the domestic operation.
B) It better insulates legally the existing operation from the new operation.
C) A foreign unit's earnings are not taxed in the United States until remitted to the domestic unit.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

All the choices listed are valid reasons for preferring a subsidiary form of organization over a branch form when expanding. Choice A addresses the limitation on foreign tax authorities' access to domestic records, Choice B highlights the legal insulation between operations, and Choice C explains the tax advantage regarding foreign earnings.

_____ a Reason for Using the Subsidiary Form of Organization