If an Entity Is Not Considered a VIE, the Determination

question 28

Multiple Choice

If an entity is not considered a VIE, the determination of consolidation is based on whether:

• A) the voting rights are proportional to the obligations to absorb expected losses or receive expected residual returns.
• B) the total equity at risk is sufficient to permit the entity to finance its activities without additional subordinated financial support from other parties.
• C) the equity investments or investments in subordinated debt are at risk.
• D) one of the entities in the consolidated group directly or indirectly has a controlling financial interest (usually ownership of a majority voting interest) in the other entities.

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Definitions:

Leisure

refers to free time spent away from business, work, domestic chores, and education, as well as necessary activities such as eating and sleeping.

Legitimizing Myths

Beliefs or narratives used to justify and maintain social inequalities or the status quo by presenting them as natural or inevitable.

Inequalities

The condition of lacking equality, particularly in terms of status, rights, and chances.

Dominant Response

The most likely reaction or behavior to occur in a given situation, often under conditions of stress or high arousal.