Drew Is One of the Directors of Mellor Limited

Multiple Choice

Drew is one of the directors of Mellor Limited. In the current financial year, Mellor Limited paid £50 000 to Advice Agency, where Drew's brother works, for the consultancy services it provided. In addition, Mellor Limited also paid £2000 to Drew for a once-off consultancy he provided on a specific project. Which of the following statements describes the relationship between Drew, Mellor Limited, and Advice Agency?

A) Advice Agency is a related party to Mellor Limited.
B) Drew is not a related party to Mellor Limited.
C) The £50 000 consultancy fee is not a related party transaction.
D) The £2000 consultancy fee is not a related party transaction.