If an Intermediate Market Exists but Divisions Are Prohibited from Buying

question 30

True/False

If an intermediate market exists but divisions are prohibited from buying or selling from the outside,the intermediate market can be ignored in determining the optimal transfer price.

---

Definitions:

Trade Secret

A type of confidential business information which provides an enterprise a competitive edge and is therefore kept secret.

Confidential Information

Sensitive or proprietary knowledge that is not to be shared with unauthorized individuals, entities, or the public, often protected by law or agreement.

Patent

A government-granted monopoly prohibiting anyone but the patent owner and licensees from making, using, selling, or importing the invention.

Copyright Infringement

The unauthorized use of copyrighted material without permission, violating the copyright holder's rights.