If a company wants to limit its potential liability which may derive from its foreign operations, it should form a foreign subsidiary rather than a foreign branch

Question

Quizplus · Accepted Answer

By forming a foreign subsidiary, the parent company can limit its liability to the assets of the subsidiary, whereas a foreign branch is considered an extension of the parent company and all of its liabilities are attributed to the parent company.

If a Company Wants to Limit Its Potential Liability Which