Some Business Leaders Argue That Related-Party Transactions Have Benefits for the Reporting

question 23

Multiple Choice

Some business leaders argue that related-party transactions have benefits for the reporting entity.The benefits are said to include:

• A) lower legal costs associated with contracts.
• B) increased profits for the related entity.
• C) reduced competition among suppliers.
• D) better, more reliable service and better prices.

---

Definitions:

Abiotic Environment

The non-living chemical and physical components of an environment, such as temperature, light, and mineral nutrients, which affect living organisms.

Abiotic

Referring to non-living chemical and physical factors in the environment which affect ecosystems.

Biotic

Relating to or resulting from living things, especially in their ecological relations.

Ecosystems

Communities of living organisms in conjunction with the nonliving components of their environment, interacting as a system.