Differentiate Between Internal and External Employees

question 100

Essay

Differentiate between internal and external employees.

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Definitions:

Lenders

Lenders are individuals, institutions, or entities that provide funds to others with the expectation of repayment of principal, along with interest or fees.

Interest Tax Shield

The interest tax shield refers to the reduction in income taxes resulting from deducting interest payments on debt from taxable income.

Corporate Tax Rate

The corporate tax rate is the percentage of a corporation's taxable income that it must pay to the government as taxes.

Debt

A sum of money lent by one party to another, which has to be repaid at a future date, typically with added interest.