A related party is a person or entity that:
A)has a family tie to a management member.
B)does business with the company.
C)can exert significant influence over or be influenced by the company.
D)is a member of the company's management.

Question

Quizplus · Accepted Answer

A related party is someone who has the ability to exert significant influence over, or be influenced by, the company. This can include individuals or entities that have a close relationship with the company such as family members of management, but it also includes anyone who does business with the company or has the ability to impact the company's decisions or operations. While members of management may be related parties, not all related parties are necessarily members of management.

A Related Party Is a Person or Entity That