When There Is No Intermediate Market

question 17

Multiple Choice

When there is no intermediate market:

• A) there is no optimal transfer price.
• B) the selling division cannot transfer its goods internally.
• C) the buying division cannot purchase its goods externally.
• D) there is no reason for top management to intervene in transfer pricing disputes.

---

Definitions:

Creditor

An individual, company, or institution to whom money is owed by another party, the debtor.

Debtor

A person or entity that owes money to another party.

Electronic Transfer

Electronic transfer involves the movement of funds between accounts using electronic systems, without the need for physical exchange of money.