Types of Branches: Local And Foreign - SS3 Accounting Past Questions and Answers - page 1
What is a local branch?
A branch located in a different country than the parent company
A branch located in the same country as the parent company
A branch located in a different city than the parent company
A branch located in a different state than the parent company
What is a foreign branch?
A branch located in a different city than the parent company
A branch located in the same country as the parent company
A branch located in a different state than the parent company
A branch located in a different country than the parent company
What is the purpose of a local branch?
To expand the business to new local markets or areas
To expand the business to new international markets or areas
To decrease the revenue of the parent company
To reduce the customer base of the parent company
What is the purpose of a foreign branch?
To reduce the customer base of the parent company
To decrease the revenue of the parent company
To expand the business to new local markets or areas
To expand the business to new international markets or areas
What is the main difference between local and foreign branches?
Their purpose
The laws and regulations they must follow
The management structure they operate under
Their location
What are some of the advantages of establishing a foreign branch for a business?
Some advantages of establishing a foreign branch for a business include expanding the business to new international markets, gaining access to new resources and talent, and diversifying the revenue stream.
How does the location of a local branch affect its operations?
The location of a local branch affects its operations because it must comply with the laws and regulations of the country in which it is located, as well as adhere to the cultural and business practices of that country. It may also face competition from local businesses that are already established in the market.