Which of the Following Statements Is TRUE Concerning Domestic Expansion

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

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