Which of the Following Lists Are Acceptable Methods That May

question 1

Multiple Choice

Which of the following lists are acceptable methods that may be used in adopting a reasonable transfer price between a Canadian parent and its foreign subsidiary corporations?

• A) Cost-plus method; resale price method; profit-margin method
• B) Comparable arm's-length selling price method; lowest tax rate method; profit-margin method
• C) Comparable arm's-length selling price method; cost-plus method; resale price method
• D) Lowest tax rate method; resale price method; comparable arm's-length selling price method

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Definitions:

Punishment

A consequence that decreases the likelihood of a behavior being repeated in the future.

Stimulus

Any object, event, or change in the environment that elicits a sensory or behavioral response.

Higher-Order Conditioning

A process in classical conditioning where a conditioned stimulus is paired with a new neutral stimulus, creating a second (often weaker) conditioned response.

Reinforcer

Any stimulus that strengthens or increases the probability of a specific response or behavior by being delivered or removed after the behavior occurs.