The Practice of Pricing Intermediate or Finished Products Exchanged Among

question 72

Multiple Choice

The practice of pricing intermediate or finished products exchanged among the subsidiaries and affiliates of the same corporate family located in different countries is known as ________.

• A) transfer pricing
• B) breakeven pricing
• C) premium pricing
• D) discounting

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Definitions:

Principals

Principals typically refer to the main parties involved in a transaction or operation, such as the owners or chief stakeholders of a company.

Agents

Individuals or entities authorized to act on behalf of others, typically in financial transactions or negotiations.

Primary Market Transaction

A primary market transaction involves the initial issuance and sale of securities directly from the issuer to investors, as opposed to secondary market trading where investors buy and sell securities among themselves.

Investment Banker

A professional or firm that acts as an intermediary in large and complex financial transactions, such as mergers, acquisitions, and public offerings.