Accounting Multiple Choice Question – 15 July 2025

The Competition Act 1998 prohibits agreements, business practices, and conduct that damage competition, including abuse of a dominant position.

Examples of specific types of conduct that are particularly likely to be considered as an abuse where the business is in a dominant position include which ONE of the following?

Select ONE answer:

1. Imposing transfer pricing
2. Providing public goods on behalf of the government
3. Starting a summer TV advertising campaign
4. Limiting production markets or technical developments to the prejudice of consumers

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct == > Imposing unfair purchase or selling prices would be considered as an abuse where the business is in a dominant position, but transfer pricing refers to the pricing of goods and services within a multi-divisional organisation, particularly regarding cross-border transactions.

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