Suppose in Order to Defraud the Shareholders,a Manager Sets Up

question 30

Multiple Choice

Suppose in order to defraud the shareholders,a manager sets up an independent company that he owns and buys one of the main company's inputs of production from this company.He would be tempted to set the transfer price

• A)below market prices.
• B)above market prices.
• C)at the market price.
• D)in accordance with GAAP.

---

Definitions:

Guaranteed Job Security

A situation in which an employee has assurance from their employer that they will retain their job for a certain period, often regardless of economic conditions.

Entrepreneurs

Individuals who start and run their own businesses, taking on financial risks in the hopes of profit.

Social Entrepreneurs

Social entrepreneurs are individuals who start innovative businesses with the primary goal of solving social problems and improving society.

Innovative Solutions

Novel ideas or methods that address existing problems or needs in a unique or more effective way.