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The Only Reason a Company Needs to Create an Internal

question 101

True/False

The only reason a company needs to create an internal control system is to deter intentional fraudulent acts.


Definitions:

Stock Split

The division of a company's existing stock into multiple shares to boost market liquidity without affecting shareholders' equity.

Book Value

The net value of a company's assets minus its liabilities, as recorded on the balance sheet.

Market Value

The price at this moment for buying or selling an asset or service in the market.

Stock Dividend

A stock dividend is a payment made in the form of additional shares instead of cash, reflecting a company's desire to reward shareholders without reducing cash on hand.

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