Which One of the Following Would NOT Fit the Description

question 101

Multiple Choice

Which one of the following would NOT fit the description of a related- party transaction?

• A) Sales of merchandise between a parent company and its subsidiary
• B) Exchange of equipment between two companies owned by the same person
• C) An unusually large sale of merchandise to the company's best and largest customer
• D) Loans to corporate officers at market rates of interest with a regular repayment schedule

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Definitions:

Consumer Transactions

The purchase and sale of goods or services between a buyer, typically an individual or household, and a seller for personal use.

Consideration

In contract law, it refers to something of value exchanged by the parties involved that induces them to enter into the agreement.

Personal Defense

Strategies, methods, or actions employed by an individual to protect themselves from harm.

HDC

Stands for Holder in Due Course, a term in commercial law referring to a party who acquires a negotiable instrument in good faith and for value, thus having certain protections.