The Most Important Benefit of Transfer Pricing to a Corporation

question 5

Multiple Choice

The most important benefit of transfer pricing to a corporation is

• A) more revenue.
• B) lower cost of materials.
• C) tax avoidance.
• D) less competition.

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Definitions:

Real GDP

A measure of the value of all goods and services produced by an economy over a specific time period, adjusted for inflation.

Expansionary Gap

A situation where the output of an economy exceeds its potential output, typically characterized by high demand and inflation.

Passive Approach

A strategy of minimal interference or intervention, often referring to investment strategies or management styles.

Aggregate Supply

Total supply of goods and services that firms in a national economy plan on selling during a specific time period.