Sales between multi-national corporation subunits are termed arm's-length transactions.

Name: Sales between multi-national corporation subunits are termed arm's-length transactions.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Arm's-length transactions refer to deals made by parties who act independently and have no relationship to each other, ensuring that both parties act in their own self-interest. Transactions between subunits of a multi-national corporation are typically not considered arm's-length because they are related parties.

Sales Between Multi-National Corporation Subunits Are Termed Arm's-Length Transactions