Multinational Companies Use Transfer Prices to Minimize World-Wide Income Taxes

question 23

True/False

Multinational companies use transfer prices to minimize world-wide income taxes and import duties.

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Definitions:

Entrusted

Given over to another's care or protection, often relating to property or duties.

Merchant

An individual or company engaged in the trade of goods, services, or commodities for profit.

UCC

The Uniform Commercial Code; a comprehensive set of laws governing all commercial transactions in the United States, intended to standardize the law across the states.

Physical Delivery

Refers to the actual transfer of the underlying asset rather than a cash settlement in futures and options trading.