Cost-based transfer pricing and market-based transfer pricing are the methods that usually used in establishing a transfer price.
The cost-based pricing is used determine the price of the product by the method of calculation. It is the best way the company can maximize profit.
The market-based pricing it when the company will look for the other product with similar price and evaluate it.
-Whenever countries have different opportunity costs in production they can benefit from specialization and trade.
-Benefits of specialization include greater economic efficiency, consumer benefits, and opportunities for growth for competitive sectors.
Answer:
The action of ACME global represent the influence of Government in the external environment of an organisation
Explanation:
The external environment of an organisation represents the factors outside the environment that is capable of influencing the decision of the organisation. It consists of the outside factors that influences the organisation. e.g social cultural, political, economic, technological factors among others.
One of these factors is the Political/ Legal factor:
The political / legal factor focuses on the influence of government on business organisations. It reviews how government laws, policies, and rules affects the operation of business. The rules and regulations or policies put in place by the government has the capacity to influence the business decision.
In the case of ACME global hiring a director of safety, they are doing so in other to comply to the occupational safety and Health Act that is most definitely enacted by the government.
Therefore we can say that the action of ACME global represent the influence of Government in the external environment of an organisation
Answer:
A firm commitment arrangement with an investment banker occurs when an investment banker buys the securities for less than the offering price and accepts the risk of not being able to sell them.
The correct option is B.
Explanation:
A firm commitment arrangement happens when an investment banker buys the securities for less than the offering price and accepts the risk of not being able to sell them.
However, the issuer receives a little less money than the offering price but he gets a specific amount for all the security being issued. The risk rests completely on the investment banker.
Therefore, the correct option is B.
