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.

Use this term in a sentence

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

​ Was this Helpful? YES  NO 8 people found this helpful.

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

​ Was this Helpful? YES  NO 2 people found this helpful.

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.

​ Was this Helpful? YES  NO 4 people found this helpful.

Show more usage examples...

Related Terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
entity SPE