With respect to direct exporting, the primary difference between a foreign sales subsidiary and a foreign sales branch is that the foreign sales branch:
A) is larger.
B) is smaller.
C) is not a separate legal entity.
D) uses home country managers.
E) does not pay taxes.

Question

Quizplus · Accepted Answer

A foreign sales branch is not a separate legal entity from its parent company. This means that the parent company assumes all liability and is responsible for all decisions made by the branch. In contrast, a foreign sales subsidiary is a separate legal entity that operates independently of its parent company.

With Respect to Direct Exporting, the Primary Difference Between a Foreign