When Auditing the Objectives and Strategy Aspects of an Organisation

question 15

True/False

When auditing the objectives and strategy aspects of an organisation, typical questions to be answered include: how logical are the company's objectives, given the more significant opportunities/threats and its relative resources?

---

Definitions:

Market/Book Ratio

Also known as the price-to-book ratio, it compares a company's market value with its book value, indicating how much investors are paying for each dollar of net assets.

Stock Price

Stock price is the current market price of a share of stock, reflecting the value the market places on a company.

Book Value

The net value of a company's assets found on its balance sheet, and calculated as total assets minus intangible assets and liabilities.

Equity Multiplier

A financial ratio indicating the portion of a company's assets that are financed by stockholder's equity.