3) Holden plc is a large multinational organisation

Subject:AccountingPrice: Bought3

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3) Holden plc is a large multinational organisation.

a.      Explain the term ‘decentralised structure’ and  the advantages and disadvantages that Holden plc might experience if it adopts a decentralised structure                                                                                        

b.     Explain the term ‘transfer price’.  What are  the different methods that Holden could use to determine the price it uses to transfer goods or services from one division to another                                                                          

Discuss the problems that arise specifically when determining transfer prices where divisions are located in different countries