The arm's-length principle refers to the principle that the transfer price struck between related companies should be the same as that negotiated between two independent entities acting in an open market.

Name: The arm's-length principle refers to the principle that the transfer price struck between related companies should be the same as that negotiated between two independent entities acting in an open market.
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Question

Quizplus · Accepted Answer

The statement accurately defines the arm's-length principle.

The Arm's-Length Principle Refers to the Principle That the Transfer