Which of the Following Is a Disadvantage of Pursuing a Transfer

question 77

Multiple Choice

Which of the following is a disadvantage of pursuing a transfer pricing policy?

• A) It is not useful in shifting earnings from a high-tax country to a low-tax one.
• B) Transfer pricing does not treat each subsidiary as a profit center.
• C) It is not effective when significant currency devaluation is expected.
• D) A transfer price policy cannot be used to move funds when dividends are restricted.

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