True or False

1. A primary government can be a component unit of another primary government.

2. When a component unit is an integral part of a primary government's financial reporting entity, the financial statements of the component unit should be "blended" with the financial statements of the primary government.

3. An important part of managements discussion and analysis is managements forecast and projections regarding what could occur in the future if certain current unknown, but plausible, events occur.