sando
HSC IS EVIL
- Joined
- Oct 31, 2005
- Messages
- 1,123
- Gender
- Male
- HSC
- 2006
ok there's been alot of arguments over this question... so i thought through a poll everyone can vote.. as the majority of people would normally indicate a correct response.. as in past years there has never been a question with <50% chosen and been right
Q. A company reduces the amount of tax it pays by engagin in transfer pricing. Which of the following describes this practice ?
A) Redirecting profits to take advantage of tax havens
B) Buying products from a subsidiary at lowe than market prices
C) Undercutting a competitor by selling goods at below cost price
D) Taking advantage of currency fluctuations to buy imported raw materials
i know its only 1 mark.. but i would still like to find out correct answer..
personally, i chose B
Q. A company reduces the amount of tax it pays by engagin in transfer pricing. Which of the following describes this practice ?
A) Redirecting profits to take advantage of tax havens
B) Buying products from a subsidiary at lowe than market prices
C) Undercutting a competitor by selling goods at below cost price
D) Taking advantage of currency fluctuations to buy imported raw materials
i know its only 1 mark.. but i would still like to find out correct answer..
personally, i chose B