A. B and C each own 1/3 of the outstanding voting common stock of entity Zelda. Decisions are made by unanimous written consent of the board and A, B and C all hold one seat on the board. A B and C are not related parties. Zelda was determined to be a variable interest entity. An employee of A acts as the CEO of the Zelda. In addition to their equity investment, B loaned Zelda $1 million. In addition to their equity interest, Zelda rents their facilities from C for $500,000 per year. Who is the primary beneficiary of Zelda?

Select one:

a.A&B would be joint primary beneficiaries

b.B

c.A

d.C

e.There is no primary beneficiary