Question

Choose a Canadian international company, and by assuming the role of IC executive, explain what an international branch or international location has to report to the parent company back in the home country.

Answer 1

The Canadian international company chosen is Wallmart. Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores, with its headquarters in Bentonville, Arkansas.
Assuming the role of IC executive, an internation branch is supposed to report the following to the paretn company.
1) Profit and losses - It is essential to report profit and losses to the parent company as the company must aware of the condition of business. It helps in directing the company.
2) Employees hired or fired and salaries paid to them- It is important to update the company with the number of employees hired and fired as they are bound to give information about the number of employees employed and the salaries paid to them.
3) Stocks purchased- In case, the company suffers shortage of stocks and purchases it to sell it to customers or convert raw material into finished product, the company is supposed to notify the parent company about the purchases of stock.
4) Sales revenue- Total revenue from sales is different from profit. It is the total payments recieved for the sale of products. After deducting the cost, total profit is calculated.
5) Working capital expenses- The company is supposed to report all the expenses to the parent company precisely with all the accounts.
6) Other expenses- Other miscellaneous expenses such as electricity bills, internet bill, cost of getting fridge repaired etc.