special purpose entity


A business interest formed solely in order to accomplish some specific task or tasks. A business may utilize a special purpose entity for accounting purposes, but these transactions must still adhere to certain regulations.

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You should try and figure out if there is a special purpose entity that may be able to make things better for you.

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They were a special purpose entity and they realized that they had to accomplish a specific task in order to do what they wanted.

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Many Americans became familiar with the term special purpose entity through the Enron scandal of 2001, in which a business interest or "shell company" was formed for a specific task; in this case, to hide enormous amounts of debt.

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SPE entity