Transfer pricing refers when a company is taken advantage of by another company it does business with after it has made an investment in expensive specialized assets to better meet the needs of the other company.

Question

Quizplus · Accepted Answer

Transfer pricing refers to the pricing of goods, services, and intangibles between related entities within a multinational corporation, not the exploitation of a company by another after investment in specialized assets.

Transfer Pricing Refers When a Company Is Taken Advantage of by Another