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 an entity or person that can exert significant influence over or be influenced by the company. This can include individuals or organizations with which the company has a close relationship, such as key management personnel or affiliates of the company. While related parties may include family members of management, this is not the sole criteria for determining a related party relationship.

A Related Party Is a Person or Entity That