The Concept Called "Occam's Razor" States That

question 312

Multiple Choice

The concept called "Occam's razor" states that:

• A) the theory that is applicable to the greatest range of phenomena is more likely to be correct.
• B) when two theories describe the same phenomena equally accurately, the theory with the greater complexity is more likely to be correct.
• C) when two theories describe the same phenomena equally accurately, the simpler theory is more likely to be correct.
• D) the theory that describes phenomena more accurately is more likely to be correct.

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Definitions:

Legal Capital

The portion of a company's equity that cannot legally be distributed to shareholders as dividends, often linked to the par value of common and preferred stock.

Par Value

A nominal dollar amount assigned to corporate shares, representing the minimum price per share that shares can be issued at.

Stated Value

A value that has been assigned to a corporation's stock that does not have a par value, often used for accounting purposes.

Treasury Stock

Shares that were issued and later reacquired by the issuing corporation.