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

question 16

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.
• E) None of the given answers.