A multinational company may set up affiliates to break into international markets while protecting the parent company's name in case the affiliate fails or the parent company is not viewed favorably due to its foreign origin. Understanding the differences between affiliates and other company arrangements is important in covering debts and other legal obligations.

31, 1969, organizations requesting rulings or determinations that they are affiliates of a governmental unit must discuss in the request the presence or absence of each of the factors listed (in situations in which no ruling or determination has been received and facts and circumstances relevant to the determination (regarding the otherwise necessary administration of the law).
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