Which of the Following Is True About Structural Equation Modeling

question 56

Multiple Choice

Which of the following is true about Structural Equation Modeling?

• A)In SEM,the constructs are unobservable or latent factors that are representative by multiple variables.
• B)SEM explicitly takes into account the measurement error.
• C)SEM is mainly used as an exploratory technique.
• D)A and B are true.
• E)A,B,and C are true.

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Definitions:

Net New Borrowing

The total amount of new debt a company has taken on minus any debt that has been repaid during a specific period.

Interest Payments

Payments made to a lender by a borrower in return for the use of borrowed money, typically calculated as a percentage of the principal.

Net New Equity

The difference between equity capital a company raises by issuing new shares and the capital it uses to buy back existing shares.

Dividend Payments

Allocations of a segment of a company's profits, determined by the board of directors, to a category of its stockholders.