By meeting certain conditions,a company that sets up an Special-purpose entity (SPE)can legitimately avoid including the debt of the SPE on its balance sheet

Question

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If the conditions set by the company are met, it is possible for the debt of the SPE to be kept off the balance sheet, so that the company can avoid showing it as a liability. This is a commonly used tactic in corporate finance.

By Meeting Certain Conditions,a Company That Sets Up an Special-Purpose