Which of the following is an advantage of conducting foreign operations through a branch?
A)Foreign branch losses can offset domestic income.
B)Foreign branch income is taxed at a lower rate than domestic income.
C)The parent's assets are protected from foreign branch creditors.
D)Foreign branch income is taxed by both the United States and the host country.

Question

Quizplus · Accepted Answer

One advantage of conducting foreign operations through a branch is that foreign branch losses can offset domestic income. This can help reduce the overall tax burden on the parent company. Option B is incorrect as foreign branch income may be taxed at a higher or lower rate depending on the tax laws of the host country. Option C is incorrect as the parent's assets may not be protected from foreign branch creditors. Option D is incorrect as foreign branch income is only taxed by the host country unless there is a tax treaty between the host country and the United States.

Which of the Following Is an Advantage of Conducting Foreign