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:

Stimulus

A circumstance or occurrence that triggers a reaction in a living being.

Performance

The act of carrying out a task or function, often measured against known standards of accuracy, completeness, speed, and efficiency.

Determination

The firmness of purpose or the process of establishing something exactly, often through research or calculation.

Persistence

Persistence is the continued effort and determination in doing something despite difficulties or delays in achieving success.