A Key Characteristic of a Good Scientific Theory Is That

question 102

Multiple Choice

A key characteristic of a good scientific theory is that it is a simple explanatory device.This key characteristic is explained as the scientific thinking principle of

• A)falsifiability.
• B)Occam's Razor.
• C)replication.
• D)ruling out rival hypotheses.

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Definitions:

Interest Tax Shield

The savings in taxes achieved by deducting interest payments on debt from taxable income.

Financial Risk

The possibility of losing money on an investment or business venture, usually due to changes in market conditions or poor financial management.

Levered Firms

Companies that use debt in addition to equity in their capital structure.

Unlevered Firms

Companies that operate without the use of borrowed money or financial leverage.