"Bad Theories Are Abstract and Therefore Unrealistic; Good Theories Are

question 7

Essay

"Bad theories are abstract and therefore unrealistic; good theories are fully realistic and fit all the facts".Evaluate.

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Definitions:

Present Value Factors

Present value factors are used to calculate the present value of a future amount of money or stream of cash flows given a specified rate of return.

Lease Payment

Regular payments made by a lessee to a lessor for the use of an asset, as agreed upon in a lease contract.

Sales-Type Lease

A lease arrangement that allows the lessor to recognize profit at the inception of the lease due to the transfer of ownership or the realization of a sales profit beyond interest income.