Determining the primary beneficiary in a VIE Pop Corporation and Son Company participate in a business classified

Question:

Determining the primary beneficiary in a VIE Pop and Son Company participate in a business classified as a VIE. Under terms of their contractual arrangement, Pop and Son share equally in expected residual returns of the VIE. However, expected losses are allocated 70 percent to Son and 30 percent to Pop. Son serves as CEO and has the final decision on all operating and financing matters. Which of the investors is the primary beneficiary in this VIE?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...