How is a foreign subsidiary different from a foreign branch of a domestic corporation? A. The subsidiary is a company incorporated in the foreign country, whereas a branch is not a separate corporation. B. The income of a subsidiary is taxable by the country where it is located, but branch income is not subject to tax by the country where it does business. C. A subsidiary is created to manufacture and distribute products in foreign markets, whereas a branch's only function is sales in the foreign market. D. Subsidiaries always generate more foreign source income than branches do.

How is the payback period used in capital budgeting? A. As a measure of a project's risk B. To determine the amount of funds that will be required in the future C. To measure the relationship between the project's return and the company's cost of capital D. None of the above