The usual criterion for preparing consolidated financial statements is voting control in the form of majority ownership of common stock. However, for some entities common stock ownership does not indicate control because the common stock of the entity lacks one or more of the economic characteristics associated with equity. Which of the following is/are true?
a. U. S. GAAP refers to such entities as a variable interest entity (VIE).
b. If the invested equity is so small that the entity requires other financial support to sustain its activities, it meets the criteria for a variable interest entity.
c. If the equity owners lack meaningful decision rights, it meets the criteria for a variable interest entity.
d. choices a and b, only
e. choices a, b, and c.
E
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Executive orders are issued only by the executive branch of the federal government
Indicate whether the statement is true or false
Based on the early behavior research conducted by Lewin and his associates, managers who provide information but little guidance to their followers are likely to have:
a. the best level of performance b. frustrated and disorganized groups c. highly empowered followers who can make their own decisions d. relaxed and cohesive groups