Because Tax Rates Are Different in Different Countries,companies Have Incentives

question 90

Multiple Choice

Because tax rates are different in different countries,companies have incentives to set transfer prices that will

• A)increase revenues in low-tax countries and increase costs in high-tax countries.
• B)increase costs in low-tax countries and increase revenues in high-tax countries.
• C)decrease costs in high-tax countries and decrease revenues in low-tax countries.
• D)None of the answers is correct.

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Definitions:

Adulthood

The period in human development after adolescence, typically characterized by physical, psychological, and social maturity.

Longitudinal Study

An investigative structure that consists of observing the same variables repeatedly over short or long time spans.

Different Ages

A term indicating the consideration or comparison of various stages of life or development in research or analysis.

Cross-Sectional Study

A research design that collects data from a population, or a representative subset, at a specific point in time.