The arm's length transaction presumption:

A. Requires direct negotiation between parties to ensure an arm's length price.
B. Cannot be satisfied in a private market transaction.
C. Assumes that each party is dealing in its own economic self-interest.
D. Applies to both related party and unrelated party transactions.


Answer: C

Business

You might also like to view...

Relationship marketing, which stresses an approach on developing long-term relationships with customers, has been disliked by many U.S. companies

Indicate whether the statement is true or false

Business

Which of the following factors influencing the business buying process do marketers typically find most difficult to assess?

A) economic B) technological C) interpersonal D) organizational E) environmental

Business

A predictor which has an absolute cause and effect relationship to a cost is referred to a cost driver

Indicate whether the statement is true or false

Business

The basic principles of contract law apply to insurance policies

a. True b. False Indicate whether the statement is true or false

Business