Which of the Following Is Evidence of Fiscal Independence for the Purpose

question 47

Multiple Choice

Which of the following is evidence of fiscal independence for the purpose of considering whether one legally separate organization is a component unit of another?

• A) The potential component unit is precluded from issuing long-term debt.
• B) The potential component unit raises its own taxes without the approval of the primary government.
• C) The potential component unit names its board of directors without the approval of the primary government.
• D) The potential component unit sets user charges with the approval of the primary government.

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Definitions:

Cumulative Probability

The probability that a random variable takes on a value less than or equal to a specified value, often visualized in the form of a cumulative distribution function.

Interval of Random Numbers

The range between the smallest and largest numbers in a set that has been chosen randomly.

Random Numbers

Sequences of numbers generated in such a way that each number has an equal chance of being any value within the defined range, used in simulations and probabilistic calculations.

Expected Demand

An estimate of the quantity of a product or service that consumers will purchase in the future, often used for planning and inventory management.