A foreign branch is an extension of the parent and is not an independently incorporated firm separate from the parent. It does not have its own legal identity or existence separate from the parent company. The parent company has full control over the operations of the branch.

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A Foreign Branch Is

Question 16

Multiple Choice

A foreign branch is:

A) an extension of the parent and is not an independently incorporated firm separate from the parent
B) an affiliate organization of the MNC that is independently incorporated in the foreign country, and one in which the U.S.MNC owns at least 10 percent of the voting equity stock
C) either a minority foreign subsidiary (an uncontrolled foreign corporation) or a controlled foreign corporation
D) b and c

Correct Answer: