SEM Models Are Estimated So as to Minimize the Sum

question 25

True/False

SEM models are estimated so as to minimize the sum of squares between constructs.

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Definitions:

Merger

The combination of two or more companies into a single entity, usually by one company acquiring the assets and businesses of the other.

Consolidation

The act of combining multiple entities, assets, or processes into a single, more effective and efficient unit.

Short-form Merger

A method of merger where a parent company merges with a subsidiary and doesn't require approval from the subsidiary's shareholders.

Parent Corporation

A company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors.