Transferring Profits from a Foreign Subsidiary to the Parent Corporation

question 84

Multiple Choice

Transferring profits from a foreign subsidiary to the parent corporation through dividends,royalties,or management fees is called

• A) technology transfer.
• B) activity-based costing.
• C) transfer pricing.
• D) repatriation of profits.
• E) transnational funding.

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Definitions:

Units

A standard measure or quantity used to specify or quantify the amount of a product, service, or resource.

Prices

The amount of money required to purchase goods or services.

Marginal Cost

The additional cost incurred by producing one more unit of a product or service, crucial for economic and pricing decisions.

Marginal Revenue

The additional income received from selling one more unit of a product or service.