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Risk Aversion
The preference to avoid uncertainty, with individuals or entities preferring more predictable outcomes over less predictable ones.
Inductive Reasoning
A logical process in which multiple premises, all believed true or found true most of the time, are combined to obtain a specific conclusion.
Accounting Theory
A framework of principles that underlie the practice and methodology of accounting in financial reporting.
Normative Theories
Theories that prescribe how things should be or how decisions should be made, often applied in ethics, economics, and law.
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