When Setting Transfer Prices Among International Subsidiaries, the Corporation Must

question 15

Multiple Choice

When setting transfer prices among international subsidiaries, the corporation must:

• A) make sure that the total tax is minimized.
• B) ensure that the transfer prices are acceptable to the taxing authorities in the countries involved.
• C) do whatever it takes to make taxes paid in the United States as low as possible.
• D) follow the transfer pricing policy used for domestic transfers.

---

Definitions:

Canada

A country in the northern part of North America, known for its vast landscapes, multicultural diversity, and as a member of the Commonwealth.

Socialized Medicine

A healthcare system in which the government owns and operates healthcare facilities and employs the healthcare professionals, providing medical services to residents.

Socialized Insurance

A system where insurance is provided or controlled by the government to ensure universal coverage for citizens against certain risks.

Ageism

A system of inequality based on age that privileges the young at the expense of the old.