Which term refers to the price one part of a company charges for products and services it provides to another part of the same company?

• A. Bearer share
• B. Transfer price
• C. Registered share
• D. Democratic rule

Answer: (B)

Intercompany transfer pricing is the price charged for goods or services exchanged between divisions or subsidiaries of the same company. This transfer price helps allocate revenue and costs to each part of the business, supporting internal performance measurement, budgeting, and how profits are reported for different tax jurisdictions. The other terms describe different concepts: bearer shares are physical certificates that allow the holder to claim ownership rights, registered shares are shares recorded in the owner's name, and a democratic rule relates to governance processes, not pricing within a company. Therefore, the correct term is transfer price.