In Order for a Theory to Be Empirically Adequate, What

question 8

Multiple Choice

In order for a theory to be empirically adequate, what must it do or be?

• A) It must yield reliable and valid quantitative data.
• B) It must be completely congruent with the theory concepts and propositions.
• C) It must reveal no major flaws in the conceptual model or its propositions.
• D) It must yield dependable and credible qualitative data.

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Definitions:

Current Ratio

A liquidity ratio measuring a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.

Acid-Test Ratio

A financial metric used to determine a company's short-term liquidity, calculating its ability to pay off short-term obligations without selling inventory.

Accounts Receivable Turnover

A financial metric that measures how effectively a company collects its receivables, calculated as net credit sales divided by the average accounts receivable.

Working Capital

A measure of a company's liquidity, operational efficiency, and short-term financial health, calculated as current assets minus current liabilities.