Which of the Following Statements Is True Concerning Variable Interest

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.