Tax Avoidance Refers to the Use of Illegal Actions to Reduce

question 26

True/False

Tax avoidance refers to the use of illegal actions to reduce one's taxes.

---

Definitions:

Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

Net Asset Value

The total value of an entity's assets minus the total value of its liabilities, often used in evaluating investment funds.

Year-End Assets

The total value of all assets held by an individual, company, or institution at the conclusion of a fiscal year.

Liabilities

Financial obligations or debts a company owes to others, which must be settled over time through the transfer of economic benefits.