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:

Nonrenewable Resource

A natural resource that cannot be replaced once it has been used or is not replenished in a short period of time, such as fossil fuels and minerals.

Removal

The process of moving or eliminating something from a certain place or context.

User Cost

The cost of using a good or service, considering both the expense of use and the opportunity cost of not using an alternative.

Extraction Cost

The expenses associated with removing natural resources from the earth, such as mining, drilling, or harvesting.