The Safeguarding of Assets Is an Objective of a Company's

question 56

True/False

The safeguarding of assets is an objective of a company's system of internal control.

---

Definitions:

Interest Tax Shield

A reduction in taxable income resulting from deductible interest expenses, typically from debts.

Tax Rate

The proportion of income or profits on which individuals or corporations pay taxes.

Optimal Capital Structure

The proportional mix of debt and equity financing that minimizes a company's cost of capital and maximizes its value.

Market Price

The market's ongoing price for an asset or service available for sale or purchase.