Firms that set their transfer prices equal to the price charged to an independent customer violate laws in many nations.

Question

Quizplus · Accepted Answer

Firms that set their transfer prices equal to the price charged to an independent customer do not necessarily violate laws in many nations, although they may be subject to scrutiny and potential adjustment by tax authorities if the prices are not deemed to be arm's length. However, there are some nations where such behavior is explicitly prohibited by law, such as China.

Firms That Set Their Transfer Prices Equal to the Price