Which of the Following Statements Is True Concerning Variable Interest

question 43

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 its sponsoring firm 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:

Degrees Of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution, used to estimate certain types of parameters.

Independent Populations

Populations that are distinct with no members in common, ensuring that the selection from one does not influence the selection from another.

Population Variances

A statistical measure representing the dispersion or variability of a population data set's values.

Equal-variances Test

A statistical method used to assess whether two or more populations have equal variances.