Which of the Following Is NOT a Characteristic of a Good

question 282

Multiple Choice

Which of the following is NOT a characteristic of a good theory?

• A)It is intuitive.
• B)It incorporates existing facts and observations.
• C)It is testable.
• D)It is parsimonious.
• E)Predictions are supported by new research.

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Definitions:

Securities

Instruments of finance that showcase either an equity interest in openly traded firms, a credit arrangement with a state body or industrial entity via bonds, or proprietary rights within options.

Financial Markets

Platforms or systems that facilitate the buying, selling, and trading of financial securities, such as stocks and bonds, commodities, and other financial instruments.

Capital Budgeting Decision

The process of deciding which long-term investments should be undertaken by a business.

Debt

A quantity of money that one party lends to another, with the expectation that it will be repaid in the future, often along with interest.