Final answer:
Subsidiaries are separate legal entities distinct from the parent company, while branch offices are not legally distinct but are part of the parent company with no separate legal status. The incorrect statement about multinational corporations is that they are primarily headquartered in the United States.
Step-by-step explanation:
The primary difference between subsidiaries and branch offices concerns the level of control and legal status. Subsidiaries are separate legal entities controlled by a parent company but have their own legal status which makes them distinct from the parent corporation. They can conduct business, enter into contracts, and are subject to corporate taxes according to local laws where they are established. Contrary to this, branch offices do not have a separate legal identity; they are merely extensions of the parent company operating in a different location. Branch offices operate under the jurisdiction and legal framework of the parent company's home country, and their activities are directly attributed to the parent.
Regarding the characteristics of multinational corporations (MNCs), the incorrect option listed is (d) They are headquartered primarily in the United States. This statement is not a characteristic of MNCs since multinational corporations can have headquarters in various countries around the world and do not concentrate solely in the United States.