In the Social Sciences, a Theory Is

question 8

Multiple Choice

In the social sciences, a theory is:

• A) an incorrect assertion.
• B) a reasoned, empirically based explanation for a set of events or condition.
• C) a denial that something took place.
• D) a guess.
• E) none of the above.

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Definitions:

Leverage Ratio

A financial measurement that compares the amount of a company's debt to its assets, equity, or earnings.

Interest-Burden Ratio

A financial ratio indicating the proportion of profits remaining after paying interest expenses, used to measure a company's ability to manage its interest obligations.

Profit Margin

A financial ratio indicating the percentage of revenue that exceeds the cost of goods sold, representing the proportion of each dollar of revenue that constitutes net profit.

ROA

Return on Assets, a financial ratio indicating how profitable a company is relative to its total assets.