Which of the following relationships indicates that River State University, a public university, would report an independent not-for-profit fund-raising foundation as a component unit?

Which of the following relationships indicates that River State University, a public university, would report an independent not-for-profit fund-raising foundation as a component unit?

Which of the following relationships indicates that River State University, a public university, would report an independent not-for-profit fund-raising foundation as a component unit? 

Ans. The foundation raises and holds economic resources that are entirely or almost entirely for the direct benefit of River State University, the university has the ability to access the resources at its discretion, and the resources are significant to the university.