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:

All-you-can-eat Salad Bar

A service model in restaurants where customers pay a fixed price to consume as much salad as they wish from a variety of options.

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The strategy of selling the same product to different customers at different prices based on willingness to pay.

Tying

A sales practice where a seller requires the purchase of one product to buy another, often used to leverage market power from one product to promote another.

Boolean Modifier

A word or symbol used in searches to refine and specify the relationship between search terms, such as AND, OR, and NOT.