Of the Following Powers Possessed by Government A, Which Is

question 62

Multiple Choice

Of the following powers possessed by Government A, which is NOT an indication that Government B should be included as a component unit of Government A?

• A) The governing documents state that, if dissolved, the assets of Government B will become the property of Government A.
• B) Government A issues revenue bonds in its name backed by the revenues of a project to be undertaken by Government B. Government A is neither legally nor morally liable for repayment.
• C) Government A has agreed to provide financial support to Government B if Government B operates at a deficit but in the entire 75 years that Government B has operated, it has never operated at a loss.
• D) The governing documents state that once Government B has equity in excess of a certain amount, 50 percent of all future operating profits will be used to reduce bonded debt of Government A.

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Definitions:

Horizontal Lines

Lines that run parallel to the horizon or ground level, often used in art and design to suggest stability or calm.

Vertical Lines

Lines that run up and down, perpendicular to the horizon, often used in art and design to convey strength, stability, and height.

Retinal Image

The image formed on the retina of the eye as a result of light reflecting off an object and entering the eye.

Gestalt Principles

Psychological theories that propose objects are viewed holistically, emphasizing the importance of context and perception in recognizing patterns.