Which of the Following Is Not a Related Party Transaction

question 18

Multiple Choice

Which of the following is not a related party transaction?

• A) Acme Corporation leases office space to Norton Company. Mr. and Mrs. Norton own Norton Company and 65% of Acme Corporation's stock.
• B) BBD Inc. licenses a patent from Nugo Inc., which owns 82% of BBD's outstanding stock.
• C) Beth Teal pays $15,000 a year to her gardener, Ben. Beth is Ben's grandmother.
• D) All the transactions are between related parties.

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Definitions:

Cross-functional Team

A team composed of members from different functional areas of the company working towards a common goal.

Cross-functional Teams

Groups composed of members from different departments or areas within an organization, working towards a common goal.

Horizontal Integration

This strategy involves a company buying or merging with other companies in the same industry at the same stage of production.

Committee

A group that is designated to work on a special task on a continuing basis.