Question: 26. There are several steps in determining whether a special purpose entity is a VIE. Which of the following is not a step in determining

26. There are several steps in determining whether a special purpose entity is a VIE. Which of the following is not a step in determining whether a special purpose entity is a VIE?

a. Determine whether the cash flows of the SPE are used to repay the securities holders.

b. Determine whether the company is the primary beneficiary of the VIE.

c. Determine whether the business-related scope exception applies.

d. Determine whether the total equity investment at risk is not sufficient to permit the legal entity to finance its activities without additional subordinated financial support.

e. None of the above.

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