In Reference to Establishing "Transfer Prices" Between the Affiliates of an MNC,which

question 40

Multiple Choice

In reference to establishing "transfer prices" between the affiliates of an MNC,which of the following relates to the "resale" price approach?

• A)Comparable uncontrolled price between unrelated firms.
• B)The price at which the good is resold by the distribution affiliate is reduced by an amount to cover overhead costs and a reasonable profit.
• C)Assumes that the manufacturing cost is readily available.
• D)Is based on financial and economic models and econometric techniques.

---

Definitions:

GPA

Grade Point Average, a standardized measure of academic achievement calculated by averaging the numerical values assigned to letter grades.

Consciousness

The state of being aware of and able to think about one's own existence, sensations, thoughts, and surroundings.

Scientific Inquiry

The process of asking questions and conducting investigations and experiments to discover truths and facts about the natural world.

Universal Mental Characteristics

Fundamental cognitive and emotional traits that are believed to be shared among all humans regardless of culture or background.