Answer:
Lahdekorpi OY, a Finnish corporation and Three-O Company, a subsidiary incorporated in the United States
Transfer Pricing:
a) The best transfer pricing method in this case is the cost plus method. This gives the transfer price as Cost + 50%.
b) The appropriate transfer price should be $3 ($2 x 1.5).
Explanation:
Transfer pricing arises when controlled entities set prices for exchange of goods and services. When Lahdekorpi OY, a Finnish corporation, sells wooden puzzles to Three-O Company, given their relationship, transfer pricing has arisen. It is the assignment of cost for goods and services exchanged between related parties, like a parent and a subsidiary.
There are many Transfer Pricing methods which entities and the taxing authorities can use to determine the best transfer price. According to the Organisation for Economic Co-operation and Development (OECD) Multinational Entities and tax authorities can use any of these five main transfer pricing methods:
a) Comparable uncontrolled price (CUP) method. The CUP method is grouped by the OECD as a traditional transaction method (as opposed to a transactional profit method)
b) Resale price method
c) Cost plus method
d) Transactional net margin method (TNMM)
e) Transactional profit split method.
The tax sheltered prgrma to encourage self employed people to acculumlate reitment funds is called Keogh plan.
A Keogh plan is a tax-deferred pension plan available to self-employed individuals or unincorporated organizations for retirement functions. A Keogh plan can be set up as both a defined-benefit plan or a defined-contribution plan, though maximum plans are set as the latter. A Keogh plan is a type of retirement investment account for self-employed people and business owners. Contributions to a Keogh plan are made pre-tax, while withdrawals in retirement face income tax. Positive sorts of Keogh plans may have higher contribution limits than other retirement debts.
A Keogh plan (is a tax-deferred pension account for self-employed people and employees of unincorporated businesses. Like IRAs, an worker can also put almost available investment into a Keogh plan, and the investment earnings develop on a tax-deferred basis.
Learn more about Keogh plan here:-
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I inferred from an economic perspective.
Answer:
<u>contributing to the creation of new jobs, new technology, and innovations, while increasing their countries GDP. </u>
Explanation:
This is so because entrepreneurs are usually termed the backbone of every economy. For example, a country's decisions about how much of a product to produce would depend on the number of entrepreneurs it has in the country's economy.
Thus, by contributing to the creation of new jobs, new technology, and innovations, entrepreneurs can shape the decisions of the country's government.
Answer: Public Relations is d) Any activity designed to create and maintain goodwill toward an organization.
Explanation:
The term Public Relation refers to the sharing of business-related information of concerned firms to the public through sources like balance sheet statement release for every financial year. Secondly, through the pubic relation task activities, All the firms publish the facts and figures which linking with sales margin and the list of consumers who have strong liaison with the particular firms.
Public Relations helps firms to earn a good reputation and a good image among the common public by maintaining strong relations with all the firms. The strategy of public relations considered as the vital component to display the useful information of the firms to the public.
Answer: A productions possibility frontier is a curve which <u>shows various combinations of set of two goods</u> which can <u>be produced with the given resources and technology</u> where the <u>given resources are fully and efficiently utilised per unit time. </u>
