Question

In: Economics

What is the difference between an international branch office and an international​ subsidiary? A. The corporation...

What is the difference between an international branch office and an international​ subsidiary?

A. The corporation of the international branch office is not liable for torts committed by employees of the branch but would be liable for torts committed by employees of the subsidiary.

B. The corporation of the international branch office is not liable for torts committed by employees of the branch but the subsidiary would be liable for torts committed by the corporation.

C. The corporation of the international branch office is liable for torts committed by employees of the branch but would not be liable for torts committed by employees of the subsidiary.

D. The international branch office is liable for torts committed by employees of the corporation but would not be liable for torts committed by employees of the subsidiary.

E. An international branch office is a separate legal entity and a subsidiary is not.

Solutions

Expert Solution

Option (c) is the correct answer.

Explaination:-A corporation is held liable for any tort committed by empolyee of branch because branch office do not have any separate legal entity.whereas torts committed by the employee of subsidiary company held not to be sortout by corporation because subsidiary company is a separate legal entity.Holding company is not liable for any torts of subsidiary company.

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Rahul Sunny answered 2 years ago
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