Which of the Following Is True Regarding GASB's Definition of the Financial

question 129

Multiple Choice

Which of the following is true regarding GASB's definition of the financial reporting entity?

• A) The financial reporting entity might include a primary government, component units, joint ventures, or a jointly governed organization.
• B) Primary governments may be general-purpose governments (such as states, cities, and counties) or special-purpose governments that have separately elected governing bodies, are legally separate and are fiscally independent of other state or local governments.
• C) Blending is used to incorporate component units only when those component units are, in substance, part of the primary government.
• D) All of the above are true.

---

Definitions:

Effective Collusion

coordination between competing firms to control prices or market shares in a way that benefits the entities involved, often at the expense of fair market competition.

Oligopolistic Collusion

When a few firms in an oligopoly market secretly agree to fix prices, limit production, or divide markets among themselves to reduce competition and increase profits.

Unstable Demand Conditions

A situation in which the demand for goods or services experiences frequent and unpredictable fluctuations.

Secret Price Cuts

Price reductions on goods or services that are not publicly advertised or disclosed to all customers.