search query: @journal_id 842 / total: 53
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| Author: | Tang, Qingquan |
| Title: | Inner transfer pricing and conflicts of interest in an enterprise (original in Chinese) |
| Journal: | Journal of Sun Yatsen University (c)
1999 : 4, p.13-17 |
| Index terms: | CONGLOMERATE COMPANIES MANAGEMENT CHINA |
| Language: | chn |
| Abstract: | Making reasonable inner transfer prices can help to deal with the conflicts of interest between local divisions and global enterprise, to establish incentive mechanism and to decrease the losses suffered from internal strife. Through contrastive studies of three types of circumstances, the present article shows that, if only one type of circumstances is considered, it is difficult to equilibrate interest of individual divisions and the enterprise. Only when the decision-making brings about equality or consistency among inner transfer price, unit cost and market price can there be the possibility to maximize the profit and guarantee the rationalization of benefits divided among the division. |
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