Related party transactions may be indicated when another company:
A) Subsidizes certain operating expenses of the company
B) Purchases its securities at their fair value
C) Loans to company at market rates
D) Has had a distributor relationship with the company for 10 years

Question

Quizplus · Accepted Answer

When another company subsidizes certain operating expenses, it may indicate a related party transaction as it suggests a financial relationship that is not at arm's length.

Related Party Transactions May Be Indicated When Another Company