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

question 1

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 taxes without the approval of the primary government.
• C) The budget of the potential component unit must be approved by the primary government.
• D) The potential component unit sets user charges with approval of the primary government.

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Definitions:

Prospect

A potential customer or client who has been identified as someone who could be interested in a company's product or service.

Salesperson

An individual who is responsible for selling products or services to customers, typically aiming to meet or exceed sales targets.

Compensation Method

The method of offsetting negative product aspects with better benefit aspects.

Valid Objection

A genuine concern or issue raised by a prospective buyer that needs to be addressed or resolved by the seller for the sales process to advance.