A related party transaction may be indicated when another company
A)subsidizes certain operating expenses of the company.
B)purchases its securities at their fair value.
C)loans to company at market rates.
D)has had a distributor relationship with the company for 10 years.

Question

Quizplus · Accepted Answer

A related party transaction may be indicated when another company subsidizes certain operating expenses of the company, as this could suggest a relationship beyond normal business dealings, potentially involving shared ownership or control.

A Related Party Transaction May Be Indicated When Another Company