Which of the Following Statements Are True Concerning Variable Interest

question 22

Multiple Choice

Which of the following statements are true concerning variable interest entities (VIEs) ?(1.) The role of the VIE equity investors can be fairly minor.(2.) A VIE may be created specifically to benefit the business enterprise that established it with low-cost financing.(3.) VIE governing agreements often limit activities and decision-making.(4.) VIEs usually have a well-defined and limited business activity.

• A) 2 and 4.
• B) 2, 3, and 4.
• C) 1, 2, and 4.
• D) 1, 2, and 3.
• E) 1, 2, 3, and 4.

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