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 dealings between entities with a close relationship. When someone in that position uses the arrangement to benefit themselves at the expense of the other party, it's called self-dealing. This label highlights the conflict of interest and why these transactions require heightened scrutiny, disclosure, and sometimes independent approval to ensure fairness. Arm's length describes transactions between unrelated parties under arms-length terms, which is the opposite scenario. Transfer pricing is about how prices are set for intercompany dealings to allocate profits, not the label for the transaction itself. Market rates refer to prices in the open market, not necessarily affected by the relationship. Therefore, self-dealing is the best match.