Why is a company structure beneficial for a involved in business export?

Expert Solution

Answer :

a company structure is beneficial for those who are involved in business export because of the following reasons:

Handling the balance sheet, taxation and local rule for every country separately is easier than to do it in combined manner.
It is also easier to divide the asset and liability in the favor of the company by adjusting liabilities where profit is more to decrease taxes as whole in the business and hence increasing profit.
It also helps the business itself in projecting the breakeven point for each business unit which help them in deciding which unit need more attention and investment compare to the other.
If some sanction is being imposed on the company because of any issue other subsidiaries won't be affected by it, had it been single company all of them would have been affected.

ekkarill92 answered 2 years ago

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