A U.S.enterprise that wishes to establish an entity abroad under its control may create a subsidiary or branch:
I.Once either of these is established,the company may waive Rights of Protection under the U.S.bilateral investment protection agreements.
II.If the company chooses a subsidiary,it will not be directly answerable for liability.

Question

Quizplus · Accepted Answer

Both statements are true. A subsidiary is a separate legal entity from its parent company, so the parent company is not directly liable for the subsidiary's debts or liabilities. Additionally, a company may waive its rights under bilateral investment protection agreements if it establishes a subsidiary or branch abroad.

A USEnterprise That Wishes to Establish an Entity Abroad Under Its