Which of the Following Is Not a Factor That Indicates

question 91

Multiple Choice

Which of the following is not a factor that indicates a business enterprise that establishes a variable interest entity (VIE) should consolidate such VIE with its own financial statements?

• A) The business enterprise establishing a VIE has the obligation to absorb potentially significant losses of the VIE.
• B) The business enterprise establishing a VIE receives risks and rewards of the VIE in proportion to equity ownership.
• C) The business enterprise establishing a VIE has the right to receive potentially significant benefits of the VIE.
• D) The business enterprise establishing a VIE has power through voting rights to direct the entity's activities that significantly impact economic performance.
• E) The business enterprise establishing a VIE is a primary beneficiary for the VIE.

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Definitions:

Aphasia

A disorder characterized by the loss of the ability to understand or express speech, caused by brain damage.

Car Accident

A collision involving one or more automobiles, potentially resulting in damage to the vehicles and injury or fatality to the individuals involved.

Parietal Lobe

A region of the cerebral cortex that plays a key role in processing sensory information from various parts of the body, particularly regarding touch and spatial orientation.

Spatial Location Skill

The ability to recognize, remember, and manipulate the position of objects in space.