A Variable Interest Entity is a legal business structure that allows a company to consolidate a business entity it does not directly control or majority-own, often used in venture financing structures.

A variable interest entity (VIE) lets a company control or consolidate a business without direct ownership.

What is a variable interest entity? A variable interest entity (VIE) is a legal entity in which an investor has a controlling interest not based on majority ownership, often used in complex financial structures.

What is an example of a variable interest? An example of a variable interest is a mortgage with an interest rate that fluctuates based on market conditions.

Which of the following statements is false concerning variable interest entities (VIEs)? The false statement about VIEs might say that the main beneficiary is always the one with the most voting rights, which isn`t always true.

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A variable interest entity (VIE) allows control over businesses without direct ownership.

A variable interest entity (VIE) allows control over a business without direct ownership, providing flexibility.