GFS part 8

Payment of Inter-Company License Fees:

• The payment is sent through Glopay

• The paying entity is responsible for paying any applicable withholding taxes to their local taxing authority

• Both answers are correct

Each legal entity must calculate the amount of license fee payable to the 3M affiliated company with whom they have:

• OIPC (3M’s Office of Intellectual Property)

• IPA (Intellectual Property Agreements)

• M&SC (Manufacturing & Supply Chain)

Inter-Company license fees are payments made between 3M affiliated companies for use of:

• Patented and non-patented technologies, technical know-how, marketing rights

• Trademarks, copyrights, technology co-development, fixed assets

• Both answers are correct

The term of an inter-company term loan generally does not extend beyond

• 3 months

• 6 months

• 1 year

Choose the correct answer:

• Permanent loans have term date and the settlement of the loan is planned or anticipated

• Permanent loans must be designated as such and documentation must be prepared in the loan and deposit agreement outlining why the loan is not foreseen as payable

• Approval for all permanent loans greater than $ 50,000 must be obtained from the CFO

Loans/deposits must be entered:

• Into in the local currency of the borrower/lender

• Into in the functional currency of the borrower/lender

• Into in the global currency

All intercompany transactions must be recorded by all trading partners (SAP)/affiliates (legacy) involved in the transaction:

• In one quarter

• In the same accounting period

• Before end of Fiscal Year

Adjustment request regarding damaged/lost goods should be initiated by Purchaser within?

• 2 months of invoice date

• 3 months of invoice date

• 4 months of invoice date

All transactions related to duplicate billings/product not shipped have a threshold of:

• $1000

• $2500

• No threshold

When paying inter-company dividends to other 3M entities is executed?

• According to the dividend plan

• After closed Fiscal Year

• Every two years