The Potential of a Tax Loss Carryforward Has No Effect

question 51

True/False

The potential of a tax loss carryforward has no effect when considering the acquisition of a company.

---

Definitions:

Financial Ratios

Calculations that compare important financial aspects of a business.

Equity

The value of an ownership interest in a business, after subtracting liabilities from assets.

Leverage

The use of borrowed capital for (an investment), expecting the profits made to be greater than the interest payable.

Activity

Any specific task, action, or series of actions undertaken, often carrying out a particular function or purpose.