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.

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Definitions:

Collectivistic Orientation

A philosophy that promotes the notion of interdependence.

Individualistic Orientation

A mindset or approach focused on the rights, significance, and achievements of the individual over those of the collective group.

Self-rewarding Orientation

An approach or attitude where individuals find intrinsic satisfaction and motivation in their actions, without needing external rewards.

Nationalistic Orientation

A perspective or ideology that places the interests and cultural identity of one's own nation above others, often emphasizing sovereignty and patriotism.