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Assume that you are the boss of Division A ( a subsidiary of Big Company. ) Your Division is selling all of its possible production
Assume that you are the boss of Division A a subsidiary of Big Company. Your Division is selling all of its possible production units to outside customers. Division B also a subsidiary of Big Company is in need of a small number units of Division As product. The CEO of Big Company your boss suggests that Division A should sell units to Division and the transaction won't hurt your Division A because the transfer price would equal your regular price to outside customers.
What risk to Division A from this transaction is not being considered by the CEO?
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