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:

Microanalysis

Analysis of the smallest, most immediately visible parts of social life, such as people interacting.

In-groups

Groups to which an individual feels a sense of belonging, often leading to positive self-identification.

Out-groups

Social groups to which an individual does not belong, often perceived as different or opposed to the individual's in-group.

Secondary Groups

Large social groups that interact on a more impersonal and formal level for a short period of time, unlike primary groups which are typically smaller and involve close, emotional ties.