Which of the Following Characteristics Is Not Indicative of an Enterprise

question 45

Multiple Choice

Which of the following characteristics is not indicative of an enterprise qualifying as a primary beneficiary with a controlling financial interest in a variable interest entity?

• A) The power to direct the most significant economic performance activities.
• B) The power through voting or similar rights to direct activities, which significantly impact economic performance.
• C) The obligation to absorb potentially significant losses of the entity.
• D) No ability to make decisions about the entity's activities.
• E) The right to receive potentially significant benefits of the entity.