Corporate taxes and tariffs are particular transfer-pricing concerns of
A)investment centers.
B)multinational corporations.
C)division managers.
D)domestic corporations involved in importing foreign goods.

Question

Quizplus · Accepted Answer

Multinational corporations have to deal with the complexities of transfer pricing when it comes to corporate taxes and tariffs. They need to ensure that they are not overpaying or underpaying taxes and tariffs in each country where they operate or conduct business. Hence, transfer pricing is a significant concern for multinational corporations. Option A is incorrect because investment centers are internal divisions of an organization that make investments and generate profits, and transfer pricing may not be a significant concern for them. Option C is incorrect because division managers are responsible for managing a particular division of a company and may not necessarily deal with transfer pricing issues. Option D is incorrect because transfer pricing is not a significant concern for domestic corporations unless they import foreign goods and have to deal with customs duties and tariffs.

Corporate Taxes and Tariffs Are Particular Transfer-Pricing Concerns of