A corporation may pursue multinational status in order to increase market share, reduce production costs through the acquisition of cheap labor, avoid trade barriers and reduce its tax liability. A multinational entity is a company that maintains its headquarters in one country, but operates assembly or production facilities in other nations.Know More
A corporation that meets its domestic saturation point often establishes facilities or offices in foreign nations in order to penetrate a new market. Entering foreign markets provides the corporation with an entirely new market in which to sell its goods or services.
Establishing foreign markets allows a multinational corporation to penetrate a larger population of potential buyers. Multinational status also increases the corporation’s growth potential by eliminating geographical boundaries.
A corporation may seek multinational status to reduce costs and increase its global presence. American corporations often establish production or assembly facilities in developing nations where labor and land are significantly less expensive than in the United States. An American corporation may also opt for multinational status to take advantage of tax variations or to reduce its domestic tax liability and avoid trade barriers.
Multinational status is applied to any corporation that possesses offices, factories or processing plants in different nations. These corporations typically maintain a centralized headquarters to coordinate their global management initiatives. Nike, Intel, Coca Cola and Microsoft are examples of multinational companies.Learn more about Corporations
Specific motivations for a business merger are varied and may include increased growth or market share, increased diversification, market synergy or economies of scale. Mergers between two companies are agreed upon to maximize shareholder wealth through the creation of a singular business formation.Full Answer >
A C corporation is a corporation that is taxed separately from the shareholders of the corporation. The company is taxed at the corporate level, and then the shareholders are taxed on payments from the corporation at the personal level. This results in a double taxation.Full Answer >
An S corporation is a formal business structure that company owners can set up under Subchapter S of the Internal Revenue Code. This type of business allows owners to take advantage of some benefits of a limited liability company along with some tax advantages of a corporation.Full Answer >
Starting a corporation involves creating a business idea and fulfilling all of the requirements as set by corporation law. In addition, you need to acquire all relevant work permits, licenses and an employer identification number.Full Answer >