What Is Not an Objective When Establishing Transfer Prices

question 31

Multiple Choice

What is not an objective when establishing transfer prices?

• A)Reduction of taxes and tariffs
• B)Avoidance of conflicts with home and host governments
• C)Goal congruence and motivation of subsidiary managers
• D)Reduction of taxes and tariffs; avoidance with conflicts with home and host governments; and goal congruence and motivation of subsidiary managers.

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Definitions:

Power

The ability or capacity to influence or control the behavior of others, often through the possession of knowledge, wealth, or force.

Microaggression

Subtle, indirect, or unintentional discrimination against members of a marginalized group.

Immigrant

An individual who moves to a country from another to live permanently or for an extended period.

Affirmative Action

A policy or a program promoting the representation and participation of minority groups and women in education, employment, and other areas.