A Related Party Is a Person or Entity That

question 11

Multiple Choice

A related party is a person or entity that:

• A)has a family tie to a management member.
• B)does business with the company.
• C)can exert significant influence over or be influenced by the company.
• D)is a member of the company's management.

---

Definitions:

Equity Method

An accounting technique used to record an investor’s proportional share of an associate company’s profits or losses on its financial statements.

Fair Value Enterprise Method

An approach to valuing a business by estimating the present value of foreseeable future earnings and the net asset value.

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee but does not have full control.

Dividends

A portion of a company's earnings distributed to its shareholders, typically in the form of cash payments or additional shares.