An enterprise that will absorb a majority of a variable interest entity’s expected losses is called the

 An enterprise that will absorb a majority of a variable interest entity’s expected losses is called the

Multiple Choice

Primary beneficiary. Correct

Qualified owner.


Critical management director.


Major facilitator.

Explanation
3.

A primary beneficiary is defined as an enterprise that will absorb the majority of the variable interest entity (VIE)'s expected losses, receive a majority of the VIE’s expected residual returns, or both. However, if one entity receives the residual returns and another absorbs the expected losses, the entity absorbing the majority of the losses is deemed to be the primary beneficiary.

(Qualified owner.) Incorrect. A qualified owner would not absorb a majority of the VIE’s expected losses.
(Major facilitator.) Incorrect. A major facilitator would not absorb a majority of the VIE’s expected losses.
(Critical management director.) Incorrect. A critical management director would not absorb a majority of the VIE’s expected losses.