Securitization Through the Use of a Properly Structured SPE May

question 35

Multiple Choice

Securitization through the use of a properly structured SPE may result in the following benefits to the company:
I. Remove receivables from the balance sheet.
II. Remove debt from the balance sheet.
III. Lower financing costs.
IV. Recognize gains on the sale of assets to the SPE.

• A) I, II, III and IV
• B) I, II and III
• C) I and IV
• D) II and III

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Definitions:

Ethical Intensity

Refers to the degree of importance or significance given to an ethical issue, determined by its potential impact on stakeholders and the urgency of addressing it.

Factors Influencing

Elements or conditions that affect the outcome of a process or the behavior of individuals.

Behaviors

Observable actions or reactions of individuals or groups in response to external or internal stimuli.

Stakeholder Responsibility

The obligation of an organization to consider the interests and wellbeing of all its stakeholders in its decisions and actions.