Related-party transactions are sometimes referred to as self-dealing.

• A. Arm's length transactions
• B. Self-dealing
• C. Transfer pricing
• D. Market rates

Answer: (B)

Related-party transactions involve parties with a close connection, where influence or control can bias decisions. When such a deal is driven by that relationship rather than objective business terms, it is described as self-dealing, highlighting the risk of personal gain at the expense of the entity and the need for oversight and fair pricing.

Arm's length transactions are deals between independent parties with no related interests, ensuring terms reflect market conditions. Transfer pricing is the method used to set prices for transactions between related entities for tax and accounting purposes, aiming to allocate profits in a compliant way. Market rates refer to typical prices observed in the open market, not the relational context of the transaction. Thus, self-dealing is the term that best matches related-party transactions.