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Of the Following Powers Possessed by Government A, Which Is

Question 7

Multiple Choice

Of the following powers possessed by Government A, which is NOT an indication that Government B should be included as a component unit of Government A?


A) The governing documents state that, if dissolved, the assets of Government B will become the property of Government A.
B) Government A issues revenue bonds in its name backed by the revenues of a project to be undertaken by Government B.Government A is neither legally nor morally liable for repayment.
C) Government A has agreed to provide financial support to Government B if Government B operates at a deficit but in the entire 75 years that Government B has operated, it has never operated at a loss.
D) The governing documents state that once Government B has equity in excess of a certain amount, 50% of all future operating profits will be used to reduce bonded debt of Government A.

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