Thompson Limited is a subsidiary of Victor Limited. Which of the following is not a related party to Thompson Limited?
A) A pension scheme that offers benefits to employees of Thompson Limited.
B) The Managing Director of Victor Limited.
C) A distributor of Thompson Limited's products.
D) An associate of Thompson Limited.

Question

Quizplus · Accepted Answer

A pension scheme that offers benefits to employees of Thompson Limited and the Managing Director of Victor Limited are both related parties as they have a close relationship with Thompson Limited through their employment and ownership relationship, respectively. An associate of Thompson Limited is also a related party as they have some form of control or influence over the financial and operating policies of Thompson Limited. However, a distributor of Thompson Limited's products is not a related party as they do not have a close relationship or control over Thompson Limited's financial and operating policies.

Thompson Limited Is a Subsidiary of Victor Limited