In Order to Maximize Profits,multinationals Typically Use Transfer Pricing by Showing

question 18

Multiple Choice

In order to maximize profits,multinationals typically use transfer pricing by showing ________ profits in the high-tax country and by showing ________ profits in the low-tax country.

• A)high; low
• B)low; high
• C)economic; normal
• D)above-normal; accounting

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Definitions:

Department of Industry Act

Legislation that establishes and defines the powers, responsibilities, and organization of a country's Department of Industry or similar entity.

F.O.B. Contracts

F.O.B. (Free on Board) Contracts are commercial agreements where the seller is obligated to deliver goods on board a vessel chosen by the buyer at a specified location, with the buyer taking responsibility for the goods once they're onboard.

Title

A formal right of ownership of property, indicating the holder has legal control and rights regarding its use or transfer.

Risk

Potential loss from destruction or damage to goods, injury, or other eventuality.