Which of the Following Describes a Special-Purpose Entity

question 12

Multiple Choice

Which of the following describes a special-purpose entity?

• A)Entities with limited lives that a company creates to achieve a specific objective.
• B)An association of two or more entities for the purpose of achieving a specific goal.
• C)Corporations that U.S.tax laws treat as partnerships,and they do not pay income taxes.
• D)A special type of partnership that confines the limited partner's potential loss to the amount of his or her investment.

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Definitions:

Paneling

Materials, often in sheets, used to cover walls, ceilings, or other surfaces in buildings for aesthetic or insulating purposes.

Formaldehyde

A colorless, strong-smelling gas used in building materials and many household products, known for its preservative and antibacterial properties.

Air Pollution

The presence of substances in the atmosphere that are harmful to human health, the environment, or the climate.

Cilia

Microscopic, hair-like structures that extend from the surface of some cells, involved in movement and sensory functions.