ADMN 4710H Chapter Notes - Chapter 20: Cash Flow, Accrual, Foreign Corporation
30 Mar 2020
School
Department
Course
Professor
Document Summary
Sale of existing products or services to new domestic markets/international markets. Sale of new products or services to existing/new domestic markets/international markets. Choice of business expansion should provide the following: ex. Considerations on business expansion: minimize start-up cash requirement, maximize return of cash for reinvestments. Domestic expansion with existing equity (no new shareholders) Division: (will be part of existing corporation as a branch) Subsidiary corporation: (will be a separate corporation and the existing corporation will become a parent corporation) Start up losses are available for existing corporation to apply against income from other sources. This will result in better cash flow and tax savings. Start up losses stay within the new corporation and can be applied against income generated in the future. Losses from expansion failure cannot be used by parent corporation. May need to amalgamate with parent to utilize losses (conditions apply) Favourable/unfavourable, depending on the province that is different from where the home operation is.
