If a Corporation Operates Two Divisions That Supply One Another,and

question 24

Multiple Choice

If a corporation operates two divisions that supply one another,and each division is located in a different country,then transfer prices are:

• A)set to allocate profit to the low tax rate country.
• B)set to allocate all costs to the low tax rate country.
• C)set to allocate profit to the high tax rate country.
• D)not allowed between most countries.

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Definitions:

Glial Cells

In nervous tissue, cells that support and nourish neurons; they also communicate with neurons and have several other functions; also see astrocyte, oligodendrocyte, ependymal cells, and microglia

Neurons

Specialized cells in the nervous system that transmit information through electrical and chemical signals.

Negative Feedback System

A regulatory mechanism in which a change in a system's output acts to stabilize or reduce further change.

Positive Feedback System

A system in which a change in some steady state triggers a response that intensifies the changing condition. Compare with negative feedback system.