Which of the Following Would Not Necessarily Be a Related

question 39

Multiple Choice

Which of the following would not necessarily be a related party transaction?

• A)Sales to another corporation with a similar name.
• B)Purchases from another corporation that is controlled by the corporation's chief stockholder.
• C)Loan from the corporation to a major stockholder.
• D)Sale of land to the corporation by the spouse of a director.

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Definitions:

Social Responsibility

Social responsibility is the commitment of a business to contribute to sustainable development, welfare of the community and society at large, beyond its profit objectives.

Increase Profits

A strategy or objective focused on enhancing the net financial gain a company receives from its operations.

Mnemonic Device

A memory aid, often a pattern of letters, ideas, or associations that assist in remembering something.

Marketing Objectives

Goals set by a company to promote its products or services and achieve a competitive advantage.