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Which of the Following Is a Necessary Characteristic of a Component

Question 2

Multiple Choice

Which of the following is a necessary characteristic of a component unit?


A) It is fiscally dependent on a primary government.
B) The primary government provides services that are used by both organizations.
C) The primary government can impose its will on the unit or the unit has the potential to provide a financial benefit to or impose a financial burden on the primary government.
D) The primary government appoints a voting majority of the component unit's governing body or a voting majority of the unit's governing body is composed of officials of the primary government.

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