What are the guidelines to use transfer pricing to shift income around the world?
What will be an ideal response?
Answer: Setting a low transfer price increases the income of the affiliate that is purchasing the good because it lowers the cost of the good. The affiliate that is selling the good has lower revenue and hence lower income. Setting a high transfer price decreases the income of the affiliate that is purchasing the good because it increases the cost of the good. The affiliate that is selling the good has higher revenue and hence higher income.
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Leadership behavior is described as either task-oriented, relationship-oriented, passive, or____________
a. powerful b. gendered c. transformational d. situational
Milton Friedman contended that a business cannot increase its profits while conforming to society's laws and ethical customs.
a. true b. false