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:

Rated

An evaluation or assessment, often involving a numerical scale or letter grade, assigned to measure the quality, performance, or other characteristics of someone or something.

Overestimated

The act of appraising something or someone too highly or beyond its actual value or capacity.

Relationship-oriented

An approach or behavior that emphasizes the importance of personal connections and relationships in problem-solving or management.

Team Leader

An individual who provides guidance, instruction, direction, and leadership to a group of individuals (the team) for the purpose of achieving a key result or group of aligned results.