Transfer Pricing Can Have an Effect on How Divisions of a MNC

question 50

Multiple Choice

Transfer pricing can have an effect on how divisions of a MNC are perceived by the local banks. Which transfer price would leave a local affiliate that imports components from the parent with less impressive financial statements?

• A)High transfer price
• B)Low transfer price
• C)None of the above

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Definitions:

Obsessive-Compulsive Personality Disorder

Pervasive rigidity in one’s activities and interpersonal relationships; includes qualities such as emotional constriction, extreme perfectionism, and anxiety resulting from even slight disruptions in one’s routine.

Workaholics

Individuals who have a compulsion to work excessively and have difficulty disconnecting from their work.

Leisure Activities

Activities undertaken for enjoyment, relaxation, or pleasure during one's free time.

Avoidant Personality Disorder

A mental health disorder characterized by a pervasive pattern of social inhibition, feelings of inadequacy, and hypersensitivity to negative evaluation.