Structural Equation Modeling Differs from Composite Measurement in That It

question 58

Multiple Choice

Structural equation modeling differs from composite measurement in that it

• A) relies on a single-item measure of the dependent variable.
• B) simplifies the measurement process.
• C) assesses reliability.
• D) maintains the separate identity of each indicator throughout the analysis.

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Definitions:

Common Shares

A type of equity security that represents ownership in a corporation, with holders possibly entitled to dividends and voting rights.

Net Income

The ultimate earnings of a corporation after reducing total income by any expenses, taxes, and costs.

Prior Period Adjustments

Adjustments made to correct financial statements of previous periods due to errors or changes in accounting policy, ensuring accuracy in current financial reporting.

Statement Of Retained Earnings

A financial document that shows how a firm's earnings are reinvested in the business or paid out to shareholders.