The Hypotheses, Which We Seek to Support or to Disconfirm

question 33

Short Answer

The hypotheses, which we seek to support or to disconfirm by empirical reasoning are intended to __________ and to predict phenomena.

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Definitions:

Financial Leverage

The use of borrowed funds in an attempt to increase the returns to equity.

Fixed Costs

For expenses like rent, salaries, and insurance premiums, their amounts do not fluctuate with the levels of output or sales.

Variable Costs

Costs that change in proportion to the level of goods or services produced by a business.

EPS

Earnings Per Share, a financial metric that divides a company's profit by the number of its outstanding shares to indicate the company's profitability on a per-share basis.