All of the Following Observations Concerning Off-Balance-Sheet Arrangements Are True

question 44

Multiple Choice

All of the following observations concerning off-balance-sheet arrangements are true, EXCEPT:

• A) a common use is to allocate risks among third parties.
• B) they might include structured finance or special purpose entities.
• C) they are often used to engage in leasing, hedging, or research and development services.
• D) they are considered illegal under SEC guidelines.

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Definitions:

Case Study

An in-depth analysis of a single subject, group, event, or situation to explore and understand its complexities in a real-life context.

Generalizability

The extent to which findings from a study can be applied to broader populations, settings, and times.

Construct Validity

The degree to which a test or instrument measures the theoretical construct it is intended to measure.

Face Validity

The extent to which a test or instrument appears to measure what it is supposed to measure, based on a superficial assessment.