What Is the Definition of a Theory

question 220

Multiple Choice

What is the definition of a theory?

• A) It is an untestable assertion or statement of untestable fact.
• B) It is a normative statement that can be tested empirically through analysis of real-world data.
• C) It is a testable statement that can be definitively proven to be True or False using empirical analysis.
• D) It is a deliberate simplification of factual relationships that attempts to explain and predict how those relationships work.

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Definitions:

Corporation

A legal entity owned by shareholders with rights and responsibilities distinct from those of its owners, recognized by law as a single entity.

Pro Rata Distribution

Pro rata distribution is a method of allocating a proportional amount or share of something such as dividends, assets, costs, or liabilities among all parties based on their respective shares.

FMV

Fair Market Value, the price that property or an asset would sell for on the open market under current conditions.

Basis

The original value or cost of an asset for tax purposes, used to determine capital gains or losses.