In Situations Where ICs Are Setting Transfer Prices

question 129

Multiple Choice

In situations where ICs are setting transfer prices:

• A) host governments are generally unaware of the actions by ICs operating within their borders.
• B) management must demonstrate they are not making profits on the sales.
• C) the IC should show that other companies are charging comparable prices for the same or similar products.
• D) the home country is usually more concerned than the host country, especially if the home country's tax rates are lower.

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