What Are Special Purpose Entities (SPEs)

question 6

Multiple Choice

What are special purpose entities (SPEs) ?

• A)Fictitious organizations formed in order to perpetrate a financial statement fraud.
• B)Business interests formed solely in order to accomplish some specific task or tasks.
• C)Bodies formed to establish audit reporting standards and rules.
• D)Independent audit boards set up to ensure that the financial statements are verified.

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Definitions:

Secondary Reinforcer

A stimulus that gains its reinforcing properties through association with primary reinforcers, such as praise, money, or social approval.

Primary Reinforcer

A stimulus that satisfies a basic need or instinct and is inherently rewarding, such as food or water.

Illegal Drugs

Substances whose production, sale, or use is prohibited by law due to their potential for abuse or harm.

Unconditioned Response

An unconditioned response is a natural, unlearned reaction to an unconditioned stimulus, such as salivating when smelling food.