Which of the Following Is Not True About a Good

question 35

Multiple Choice

Which of the following is not true about a good theory?

• A) It uses as few concepts as necessary to explain a phenomenon.
• B) It can generate many testable hypotheses.
• C) It is never proved or disproved.
• D) All experts agree it is correct.

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Definitions:

Individual Firm

An independently owned and operated company that is limited in size and in revenue depending on the industry.

Industry

Refers to a group of companies that are related based on their primary business activities.

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be eliminated through diversification.

Rate of GDP Growth

The annual percentage increase in a country's gross domestic product, indicating the pace at which its economy is expanding or contracting.