What Kind of Reasoning Uses a Few Specific Observations to Produce

question 26

Multiple Choice

What kind of reasoning uses a few specific observations to produce a statement about a larger possible set of observations?

• A) inductive
• B) deductive
• C) scientific
• D) predictive

---

Definitions:

Cash Flows

The complete sum of funds moving into and out of an enterprise, predominantly affecting its ability to cover short-term obligations.

Time Value

The principle that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate.