Which of the Following Statements Is/are True

question 16

Multiple Choice

Which of the following statements is/are true?
When a multinational company transfers goods or services between business units located in different countries:
i. the tax rates of the different countries will have no effect on overall company profits.
ii. the result is a moving of profits from one country to another.
iii. the company will consider the tax rates of the different countries when determining the transfer price.

• A) i
• B) ii
• C) i and ii
• D) ii and iii

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Definitions:

Annual Fuel Bill

The total cost of fuel consumed in a year, typically for vehicles or heating.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.

Investment

The allocation of resources, usually money, into assets or projects expected to yield future returns.

Interest Rate

The cost of borrowing money, typically expressed as a percentage of the amount lent, which lenders charge borrowers or pay to savers.