WHICH OF THE FOLLOWING STATEMENTS IS LEAST ACCURATE FOR AN ENTITY W...

8. Which of the following statements is least accurate for an entity with operations in multiple countries with different tax rates? A. Its effective tax rate is not affected by the transfer prices it sets. B. Its effective tax rate will be lower if it sets a transfer price such that a higher portion of its profit is allocated to lower tax rate jurisdictions. C. Generally multinational companies have to pay income taxes in the country in which the profit is earned. LO.i: Explain how changes in the components of sales affect the sustainability of sales growth.