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Question 3 A. Define transfer pricing and elaborate on FOUR (4) of its purposes. B. In deciding a transfer pricing method, advise management on:

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Question 3 A. Define transfer pricing and elaborate on FOUR (4) of its purposes. B. In deciding a transfer pricing method, advise management on: i. negotiated transfer pricing 1603 (14 marks) ii. market-based transfer pricing (4 marks) C. Highlight ONE (1) advantage and ONE (1) disadvantage of the market-based transfer pricing method. (2 marks) (Total 20 marks)

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