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A Type of Validity That Addresses the Question of What

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A type of validity that addresses the question of what characteristic the scale is measuring is called construct validity.


Definitions:

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Cash Flows

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Stock Dividend

A distribution of shares of stock to its stockholders.

Statement of Cash Flows

A financial statement showing the inflows and outflows of cash within a company over a specific period.

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