THE SPONSOR USUALLY MAINTAINS THE DECISION-MAKING POWER AND VOTING CONTROL OVER THE SPE

3. - CFA 2018 LEVEL 2 FRA QUESTION BANK INTERCORPORATE INVESTMENTS QBANK
CFA 2018 LEVEL 2 FRA QUESTION BANK INTERCORPORATE INVESTMENTS QBANK

3. Analyst 1: The sponsor usually maintains the decision-making power and voting control over

the SPE.

Analyst 2: The equity owners of an SPE usually receive a rate of return that is tied to the

performance of the SPE.

A. Analyst 1 is correct.

B. Analyst 2 is correct.

C. Both analysts are incorrect.