Which of the Following Statements Is False Concerning Variable Interest

question 60

Multiple Choice

Which of the following statements is false concerning variable interest entities (VIEs) ?

• A) Sometimes VIEs do not have independent management.
• B) Most VIEs are established for valid business purposes.
• C) VIEs may be formed as a source of low-cost financing.
• D) VIEs have little need for voting stock.
• E) A VIE cannot take the legal form of a partnership or corporation.

---

Definitions:

Government Owns

A situation where assets, enterprises, or other resources are owned and controlled by the government rather than by private individuals or organizations.