A city starts a public library that has separate incorporation and receives some of its operating money from the state and some from private donations. Indicate whether each of the following independent statements is true or false, and briefly explain each answer.

a. If the city appoints nine of the 10 directors, the city must report the library as a component unit.

b. If the library qualifies as a component unit and its financial results are shown as part of the city’s governmental activities, it is a blended component unit.

c. If the library appoints its own board but the city must approve its annual budget, the city must report the library as a blended component unit.