Which one of the following cash flow mechanisms arouses the least suspicion from a host government concerning a multinationals attempts to avoid additional taxes? A)transfer pricing B)reinvoicing centers C)royalties D)leading and lagging

Question

Quizplus · Accepted Answer

Leading and lagging arouses the least suspicion because it involves adjusting the timing of payments between subsidiaries to manage cash flow, which is a common and less conspicuous financial practice compared to options like transfer pricing, reinvoicing centers, or royalties that are more directly associated with tax avoidance strategies.

Which One of the Following Cash Flow Mechanisms Arouses The