NBAA CAM Practice Questions - NBAA Certified Aviation Manager (CAM) Exam

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A flight department is evaluating aircraft ownership structures. Which structure most commonly raises the FAA concern that the entity could be operating an illegal charter ('flight department company' trap)?

A single operating company that owns the aircraft and uses it for its own business A standalone entity whose only asset and business is the aircraft, providing transport to affiliates for compensation A joint-ownership agreement filed with the FAA An interchange agreement between two companies

Correct Answer:

A standalone entity whose only asset and business is the aircraft, providing transport to affiliates for compensation

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