Author Question: When one partner is operating in a low-inflation environment and the other in an environment of ... (Read 81 times)

abarnes · **on:** Jun 29, 2018

When one partner is operating in a low-inflation environment and the other in an environment of rampant inflation, which of the following can be done?
a. Transfer prices can be adjusted for the opposite effects of taxes and duties which is a delicate balancing act.
b. The effect of environmental influences in overseas markets can be alleviated by manipulating transfer prices at least in principle.
c. Artificial tax-avoidance schemes can be avoided by paying taxes and duties in every country of operation.
d. Transfer prices can be adjusted to balance the effects of fluctuating currencies.

Question 2

In order for a firm to recover lost profits in a breach of contract, the firm must produce credible evidence that it would have made such profits.
a. True
b. False
Indicate whether the statement is true or false