Chapter 3, Problem 3.11Q

To determine

Introduction:

Variable interest entity :When an investor holds a controlling power over other entity but that control is not based on majority of voting rightsit is called as a variable interest entity.

Corporate business entity:When an entity has a the regular trade to run the business like purchasing and selling, itis called as a corporate business entity.

To Explain:

The way variable interest entity typically differs from a traditional corporate business entity.