Problem

Which of the following factors would not indicate that a potential component unit (PCU) im...

Which of the following factors would not indicate that a potential component unit (PCU) imposes a financial burden or provides a financial benefit to the primary government?

A. The primary government is entitled to its share of any dividends distributed by the PCU.

B. The primary government is obligated to provide financial support to the PCU.

C. The primary government is obligated for the PCU’s debt.

D. The primary government is entitled to the PCU’s resources.

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