Which of the Following Is a Potential Complication of Observational

question 9

Multiple Choice

Which of the following is a potential complication of observational studies?

• A)Confounding variables
• B)The improper conclusion of causation
• C)Improper extension of the results
• D)All of the above

---

Definitions:

Corporate Form

Corporate form refers to the legal structure of an organization as a corporation, which is a legal entity distinct from its owners, with its rights, privileges, liabilities, and regulations.

Business Ownership

The legal right or status of possessing a company or trade, encompassing sole proprietorships, partnerships, corporations, and other entity structures.

Advantages

Benefits or favorable aspects that contribute to achieving success in a certain context, often used to compare options in decision-making processes.

Agency Costs

Agency costs arise from conflicts of interest between managers and shareholders, leading to expenses that do not necessarily benefit the shareholders.