Triva Inc., a CCPC located in Newmarket, Ontario Canada, is considering an expansion into the United States (USA, another country). Linda Mancini, the CEO, is unsure on how to structure this new venture and would like some general information before she meets with her accountant and lawyer. Linda is unsure which one of the two fundamental approaches she should be taken to conduct her 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)