The free-market price that unrelated parties charge one another for a specific product is called a(n)________.
A) worldwide price
B) transfer price
C) dual price
D) arm's length price

Question

Quizplus · Accepted Answer

The term "arm's length" means that the price is set as if the parties were unrelated and trying to maximize their own profits. Therefore, the free-market price that unrelated parties charge one another for a specific product is called an arm's length price. Option A, B, and C are incorrect as they do not accurately describe the concept being asked about in the question.

The Free-Market Price That Unrelated Parties Charge One Another for a Specific