Which of the Following Is Not One of the Ways

question 44

Multiple Choice

Which of the following is not one of the ways MNCs can reduce taxes and capture profits from a subsidiary?

• A) dividends
• B) royalties
• C) management fees
• D) transfer pricing
• E) exporting

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Definitions:

Reinforce

To strengthen a behavior, action, or concept, usually through repetition or reward.

Punishment

A consequence or penalty given for a perceived misbehavior or infringement, intended to reduce or eliminate that behavior.

Unpleasant Event

An occurrence that is undesirable or causes discomfort.

Decreasing

Refers to a reduction in size, quantity, or extent of something over a period.