Which of These Contract Terms Reduce Transfer Pricing Problems

question 25

Multiple Choice

Which of these contract terms reduce transfer pricing problems?

• A)Double markups and two-part pricing
• B)Quotas and double markups
• C)Exclusive territories and two-part pricing
• D)Two-part pricing and quotas

---

Definitions:

Absorbs

The process of taking in or soaking up energy or material from the environment, such as light, heat, or moisture, through physical or chemical means.

Free Energy

A thermodynamic quantity representing the amount of energy in a system that is available to do work at a constant temperature and pressure.

Reactants

Substances initially present in a chemical reaction that are consumed during the reaction to make products.

Products

The substances that result from a chemical reaction, found on the right side of a chemical equation.