Which of the Following Statements Is TRUE Concerning Domestic Expansion

Which of the following statements is TRUE concerning domestic expansion of a business?

A) The main advantage of incorporating an expansion activity is the use of start-up losses against income from other divisions of the founding corporation.
B) Cash funding requirements will be lower for a corporation than a corporate division if the expansion activity incurs start-up losses.
C) Obligations of a new division are separate from the parent company due to the limited liability of the division.
D) Cash funding requirements will be higher for a corporation than a corporate division if the expansion activity incurs start-up losses.