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which of the following is not a definition of a related party? a) a fiduciary of...

which of the following is not a definition of a related party?

a) a fiduciary of a trust and a beneficiary of that trust.

b) two corporations that are members of the same controlled group.

c) a grantor and a fiduciary of any trust.

d) 50% owners of a regular corporation.

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Answer #1

d) this is not case of related party

since related parties are the ones(party or entity) which is related to the reporting entity.

A person or a close family member if he / she has significant control or significant influence , but 50% owners unless all are independent is not a related party.

whereas the fiduciary / beneficiary of trust or the grantors of trust and same controlling group are falling under definition of related party sicn they definitely can lead to biased decisions.

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