A transaction between two subsidiaries of the same parent organization could only be said to be at "arm’s length" if it could be shown that __:
 

Answer: [B] Subsidiary was kept at par with unrelated companies

Arm's length denotes a transaction in which the parties to the transaction are or behave as if they are unrelated parties. For example, a transaction between two subsidiaries of the same parent organization could only be said to be at arm’s length if it could be shown that the deal had been carried out at current market prices with no preference of any kind being shown in the trading terms.

This question is a part of GKToday's Integrated IAS General Studies Module