The OECD Is Concerned About Transfer Pricing Practices Because ________

question 59

Multiple Choice

The OECD is concerned about transfer pricing practices because ________.

• A)transfer pricing can help maximize a company's worldwide tax liability
• B)transfer prices tend to be higher in industrial than developing countries
• C)governments use transfer prices to manipulate companies' investment strategies
• D)companies use transfer prices to manipulate prices and, therefore, taxes

---

Definitions:

Liabilities

Future sacrifices of economic benefits that an entity is obliged to make to other entities as a result of past transactions or other past events.

Raising Funds

The process of gathering financial resources from various sources to support business operations, projects, or investments.

Statement Of Cash Flows

A financial report that provides aggregate data regarding all cash inflows and outflows a company receives from its operational, investing, and financing activities.