What are the concerns associated with dual-pricing methods?
What will be an ideal response?
Dual pricing leads to problems and disputes about which price should be used when computing the taxable income of subunits located in different tax jurisdictions. Another concern is that dual pricing insulates managers from the realities of the marketplace because costs, not market prices, affect the revenues of the supplying division.
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If a company transfers held-to-maturity securities to available-for-sales securities, the unrealized gain or loss is recognized in income
a. true b. false
Which of the following does not contribute to the establishment of an international division?
A) An organizational unit should be headed by a committed senior manager. B) Complexity of international operations to make its own decisions. C) Recognition of the need for internal specialists. D) A lack of desire by management to scan the globe for opportunities and threats. E) Assembling a staff that will take the responsibility to coordinate.