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:

Voltages

The difference in electric potential between two points, measured in volts, which drives an electric current between those points.

Currents

The flow of electric charge through a conductor, measured in amperes.

Data Manipulation

The process of changing or processing data to make it more organized, understandable, or suitable for a specific purpose.