Triangle Inc., a CCPC located in Oshawa, Ontario (in Canada), is considering an expansion into the United States (USA, another country). Nancy Martin, the CEO, is unsure on how to structure this new venture and would like some general information before he meets with his accountant and lawyer. Nancy is unsure which one of the two fundamental approaches he should be taken to conduct his foreign operations (Branch vs. Foreign Corporation (Subsidiary)).

Required:

In what circumstances is a foreign branch structure preferable to a foreign corporation structure? Explain. (no calculations required)