Which of the Following Is Evidence of Fiscal Independence for the Purpose

Multiple Choice

Which of the following is evidence of fiscal independence for the purpose of considering whether one legally separate organization is a component unit of another?

A) The potential component unit is precluded from issuing long-term debt.
B) The potential component unit raises its own taxes without the approval of the primary government.
C) The potential component unit names its board of directors without the approval of the primary government.
D) The potential component unit sets user charges with the approval of the primary government.