TallBoy Inc. is a local furniture manufacturer and Leley Company is a retail furniture store. The two companies have no owners in common. Leley recently negotiated to purchase $845,000 of furniture from TallBoy. This purchase is an example of a/an:

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This is an arm's length transaction because the two companies have no owners in common and are acting as independent parties in the sale of furniture. A related party transaction would be if TallBoy Inc. was owned by Leley Company or vice versa. A public market transaction refers to trading in the open market.