The term _______ refers to an affiliate, principal owner, manager, or other party that is not independent of the entity.
A)related party
B)primary beneficiary
C)third party
D)other beneficiary

Question

Quizplus · Accepted Answer

The term "related party" refers to a party that is not independent of the entity, such as an affiliate, principal owner, or manager. This can create potential conflicts of interest that must be disclosed in financial reporting. The other answer choices are not accurate definitions of related parties.

The Term _______ Refers to an Affiliate, Principal Owner, Manager