Which of the following is false regarding structured entities?
A) They may take the form of a corporation, trust, partnership, or unincorporated entity.
B) Using the definition of control, these types of arrangements are dealt with in the same manner as other types of strategic investments.
C) As the company may not own shares of the entity, consolidation would not be required.
D)The company may not own any shares of the entity but typically the equity is not sufficient to sustain the entity.

Question

Which of the following is false regarding structured entities?
A) They may take the form of a corporation, trust, partnership, or unincorporated entity.
B) Using the definition of control, these types of arrangements are dealt with in the same manner as other types of strategic investments.
C)  As the company may not own shares of the entity, consolidation would not be required.
D)The company may not own any shares of the entity but typically the equity is not sufficient to sustain the entity.

Quizplus · Accepted Answer

This statement is false as consolidation may be required even if the company does not own shares of the entity, if the company has control over the entity. The other statements are true.

Which of the Following Is False Regarding Structured Entities