What Is Meant by the Term Threshold

question 66

Multiple Choice

What is meant by the term threshold?

• A) The minimum number of potential customers required to make a profit
• B) The maximum number of potential customers required to make a profit
• C) The minimum distance people are willing to travel for a good or service
• D) The maximum distance people are willing to travel for a good or service
• E) None of the above

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Definitions:

Transfer Price

The price at which goods, services or intangible properties are traded between related entities within an organization.

Buying Division

A department within a company responsible for making purchases of goods and services needed by the organization.

Selling Division

A segment of a company specifically focused on sales and distribution of products or services.

Transfer Price

The price at which divisions of a company transact with each other, used for the transfer of goods and services within an organization.