The Primary Purpose of a Factor Analysis Is to

question 5

Multiple Choice

The primary purpose of a factor analysis is to

• A) determine the relationship between variables.
• B) reduce a larger set of variables to a smaller composite set.
• C) insure that proper inferences are being made.
• D) determine the degree of non-association between variables.

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Definitions:

Venture Capital

Financing that investors provide to startup companies and small businesses with long-term growth potential in exchange for an equity stake.

First Stage Investment

The initial round of funding for a startup or business venture, typically provided by venture capitalists or angel investors to support early development.

Rate of Return

A measure of the gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.

Strategic Circumference

The boundary or scope within which strategic decisions and actions take place, defining the extent of an organization's strategic domain.