Which of the Following Statements Is Incorrect

Which of the following statements is incorrect?

A) Special purpose vehicles are usually formed as sole proprietorships.
B) The credit risk of the seller of the receivables or loans is not directly involved in the securitization.
C) To improve the credit quality of SPVs, credit enhancements such as requiring collateral, insurance, or other agreements are often added.
D) Companies that offer financing for purchases sell the loans directly to the capital market through SPVs so that neither the loans nor the financing appear on their balance sheets.