Arm's length transaction

简明释义

公平交易

英英释义

An arm's length transaction is a deal in which the buyers and sellers of a product act independently and have no relationship to each other, ensuring that both parties are acting in their own self-interest.

臂长交易是指买卖双方在交易中独立行事,并且彼此之间没有关系,从而确保双方都在为自己的利益行事。

例句

1.The sale of the property was conducted as an Arm's length transaction, ensuring that both parties acted in their own interests.

这笔房产交易作为独立交易进行,确保双方都在自己的利益下行事。

2.In mergers and acquisitions, it's crucial to establish Arm's length transactions to ensure fair valuation.

在并购中,建立独立交易至关重要,以确保公平估值。

3.To avoid any conflict of interest, the company required all sales to be made through Arm's length transactions.

为了避免任何利益冲突,公司要求所有销售都通过独立交易进行。

4.The accountant confirmed that the deal met the criteria for an Arm's length transaction to comply with tax regulations.

会计师确认该交易符合独立交易的标准,以遵守税务法规。

5.The court ruled that the transfer was not an Arm's length transaction and therefore voided the agreement.

法庭裁定该转让不是独立交易,因此宣布协议无效。

作文

In the world of business and finance, the concept of an Arm's length transaction is crucial for ensuring fairness and transparency in dealings. An Arm's length transaction refers to a deal or agreement between two parties who are independent and have no prior relationship that could influence their negotiation. This principle is essential for maintaining the integrity of transactions, particularly in situations where one party has more power or information than the other.The importance of Arm's length transactions can be seen in various contexts, including corporate mergers, real estate deals, and even everyday purchases. For instance, when a company acquires another, it must ensure that the terms of the deal are fair and reflect the true market value of the business being acquired. If the companies involved have a close relationship, there is a risk that the terms could be skewed in favor of one party, leading to potential conflicts of interest or unethical practices.In real estate, an Arm's length transaction is vital for establishing fair property values. When a buyer and seller are not related, the sale price is more likely to reflect the actual market conditions. This is particularly important for appraisals and assessments, as inflated values can lead to significant financial repercussions for both buyers and lenders.Moreover, regulatory bodies often require that certain transactions be conducted at arm's length to prevent fraud and protect investors. For example, in the realm of taxation, tax authorities may scrutinize related-party transactions to ensure that they are conducted fairly and do not distort taxable income. If a company sells goods or services to a subsidiary at an artificially low price, it could manipulate profits and evade taxes, which is why maintaining an Arm's length transaction standard is so critical.In addition to its significance in legal and financial contexts, the principle of Arm's length transactions also fosters trust and confidence among stakeholders. When parties believe that transactions are conducted fairly, they are more likely to engage in future dealings, knowing that their interests will be protected. This trust is fundamental for the smooth operation of markets and the overall economy.However, achieving true Arm's length transactions can be challenging, especially in closely-knit industries or markets with limited participants. In such environments, it can be difficult to find truly independent parties. Therefore, companies often seek third-party appraisals or engage in competitive bidding processes to ensure that their transactions meet the arm's length standard. These practices help to mitigate the risks associated with related-party transactions and promote fair competition.In conclusion, the concept of an Arm's length transaction is vital for ensuring fairness, transparency, and trust in business dealings. By adhering to this principle, companies can protect their interests, comply with regulations, and foster healthy market conditions. As the business landscape continues to evolve, understanding and implementing Arm's length transactions will remain a key factor in successful and ethical business practices.

在商业和金融领域,Arm's length transaction(公允交易)这一概念对于确保交易的公平性和透明性至关重要。Arm's length transaction是指两个独立的、没有先前关系的当事人之间的交易或协议,这种关系不会影响他们的谈判。这个原则对于维护交易的完整性是必不可少的,特别是在一方拥有比另一方更多权力或信息的情况下。Arm's length transactions的重要性可以在多种背景下看到,包括企业并购、房地产交易,甚至日常购买。例如,当一家公司收购另一家公司时,必须确保交易条款公平,并反映被收购业务的真实市场价值。如果相关公司之间有密切关系,交易条款可能会偏向某一方,从而导致潜在的利益冲突或不道德的行为。在房地产领域,Arm's length transaction对建立公平的物业价值至关重要。当买卖双方没有关系时,销售价格更有可能反映实际市场条件。这对于评估和评估尤其重要,因为虚高的价值可能会给买方和贷方带来重大财务后果。此外,监管机构通常要求某些交易以arm's length进行,以防止欺诈并保护投资者。例如,在税务领域,税务机关可能会审查相关方交易,以确保它们公平进行,不会扭曲应纳税收入。如果一家公司以人为低的价格将商品或服务出售给子公司,就可能操控利润并逃避税收,因此保持Arm's length transaction标准至关重要。除了在法律和金融背景中的重要性外,Arm's length transactions原则还促进了利益相关者之间的信任和信心。当各方相信交易是公平进行时,他们更有可能参与未来的交易,知道自己的利益将受到保护。这种信任对市场的顺利运作和整体经济至关重要。然而,实现真正的Arm's length transactions可能具有挑战性,特别是在紧密联系的行业或参与者有限的市场中。在这样的环境中,找到真正独立的当事人可能很困难。因此,公司通常寻求第三方评估或参与竞争性招标过程,以确保其交易符合arm's length标准。这些做法有助于减少与相关方交易相关的风险,并促进公平竞争。总之,Arm's length transaction的概念对于确保商业交易的公平性、透明性和信任至关重要。通过遵循这一原则,公司可以保护自身利益,遵守法规,并促进健康的市场条件。随着商业环境的不断演变,理解和实施Arm's length transactions将仍然是成功和道德商业实践的关键因素。

相关单词

length

length详解:怎么读、什么意思、用法