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

question 5

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 board or council of the potential component unit includes members of the primary government's management team.

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