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.

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Definitions:

Unemployment Rate

The rate of people in the workforce who are jobless and in active pursuit of employment.

Frictionally Unemployed

Individuals temporarily out of work while transitioning between jobs or looking for their first jobs.

Deflation

A decrease in the general price level of goods and services over time.

High Inflation

A situation where the price level of goods and services rises rapidly and consistently, eroding purchasing power.