variable interest entity

Definition

VIE. A legal business structure which does not have enough capital to support itself due to its lack of equity investors. The financial support for the VIE is provided by an outside source, such as another corporation. A VIE is often created by a corporation to serve as a holding company, which will hold assets or debt.

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You should try and make sure that you know how to handle any variable interest entity in the correct way.

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They were a variable interest entity and that meant a few things that I did not think about a lot and needed help discovering.

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The variable interest entity required additional capital to operate until it reached it's breakeven point which was scheduled to occur next month.

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