Which three of the following are related parties of a company? (choose three options)
A)An affiliate
B)The principal owner
C)The manager
D)The government

Question

Quizplus · Accepted Answer

A) An affiliate is a related party because it is a company that is controlled by, controls, or is under common control with the reporting company.
B) The principal owner is a related party because they have a significant financial interest in the reporting company.
C) The manager is a related party because they are a key management personnel of the reporting company.
D) The government is not necessarily a related party unless it has significant control or influence over the reporting company.

Which Three of the Following Are Related Parties of a Company