Under which of the following scenarios would an entity not be classified as a variable interest entity?
a. The equity investing firms do not have the obligation to absorb the expected losses of the variable interest entity if they occur.
b. The investing firms do not have the right to receive the expected residual returns of the variable interest entity if they occur.
c. The total equity investment at risk is sufficient to permit the variable interest entity to finance its activities without additional subordinated financial support from other parties.
d. The equity investing firms do not have the direct or indirect ability to make decisions about the variable interest entity's activities through voting rights or similar rights.
C
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Project escalation occurs in
A) 30 to 40 percent of all MIS projects. B) 50 to 60 percent of all MIS projects. C) 10 to 20 percent of all MIS projects. D) less than 10 percent of all MIS projects.
Which of the following is an example of an affirmative defense:
a. stare decisis b. in rem jurisdiction c. contributory negligence d. all of the other specific choices are correct e. none of the other specific choices are correct
Ensuring effective corporate governance requires an effective and engaged board of directors, uninvolved shareholders, and proper managerial rewards and incentives.
Answer the following statement true (T) or false (F)
The analysis technique that uses a discount rate determined from the company's cost of capital to establish the present value of a project is commonly called:
A) return on investment (ROI). B) break-even analysis (BEA). C) net present value (NPV). D) future value (FV). E) currency rate analysis (CRA).