Which of the Following Statements Is True Concerning Variable Interest

question 36

Multiple Choice

Which of the following statements is true concerning variable interest entities (VIEs) ? (1.) The role of the VIE equity investors can be fairly minor.
(2) ) A VIE may be created specifically to benefit the business enterprise that established it with low-cost financing.
(3) ) VIE governing agreements often limit activities and decision-making.
(4) ) VIEs usually have a well-defined and limited business activity.

• A) 2 and 4.
• B) 2, 3, and 4.
• C) 1, 2, and 4.
• D) 1, 2, and 3.
• E) 1, 2, 3, and 4.

---

Definitions:

Currency Cross Rates

These are exchange rates between two currencies, neither of which is the domestic currency of the country where the quote is given.

CPI

The Consumer Price Index is a gauge that determines the composite weighted pricing of various consumer products and services, which encompass medical care, food, and transportation.

Base Year

A specific year against which economic or financial data is compared to measure economic performance or inflation.

Ratio

A quantitative relationship between two numbers, showing how many times one value contains or is contained in the other.