The Difference Between Empirical Theory and Normative Theory Is That

question 4

Multiple Choice

The difference between empirical theory and normative theory is that

• A)Empirical theory describes what actually occurs; Normative theory describes what ought to occur.
• B)Normative theory describes what actually occurs; Empirical theory describes what ought to occur.
• C)Empirical theory is an abstract argument that provides a systematic explanation of some phenomena; Normative theory generates lessons from one place to apply in another.
• D)Normative theory is an abstract argument that provides a systematic explanation of some phenomena; Empirical theory generates lessons from one place to apply in another.

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Definitions:

Residual Value

The projected value remaining for an asset at the conclusion of its operational lifespan.

Estimated Life

The projected period over which an asset is expected to be useful in the operations of a business for depreciation purposes.

Capital Expenditure

Long-term investment spent on acquiring or maintaining fixed assets, such as equipment, buildings, or land.

Company Truck

A vehicle owned by a business, used for the company's operations or logistical needs.