One Problem with True-False Items Is That When a False

question 8

Multiple Choice

One problem with true-false items is that when a false item is correct, it does not measure whether the student actually knows the information that makes the item true.

• A)Agree.
• B)Disagree.

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Definitions:

Assets

Economic resources owned or controlled by a business or individual, expected to provide future benefits.

Complex Capital Structure

A corporate structure that features a mix of simple and complicated financial instruments, including multiple levels of debt and equity.

Convertible Bonds

Bonds issued by a corporation that can be converted into a predetermined number of shares of the company's stock at the discretion of the bondholder, usually at certain times during their life.

Stock Options

Contracts that give the holder the right, but not the obligation, to buy or sell a specified amount of stock at a predetermined price within a set time period.