Positive and Normative Statements Differ in That

question 55

Multiple Choice

Positive and normative statements differ in that

• A) positive statements can be tested, whereas normative statements cannot.
• B) normative statements can be tested, whereas positive statements cannot.
• C) normative statements depict "what is" and positive statements depict "what ought to be."
• D) normative statements never use the word "should."

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Definitions:

Noncontrolling Interest

An ownership interest in a company that is less than 50%, indicating that the holder does not have control over the company's operations.

Book Value

The net value of a company's assets minus its liabilities and intangible assets, often used to estimate a company's net worth.

Controlling Interest

The ownership of a sufficient portion of a company's stock to influence its direction, typically through more than 50% of voting shares.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from total revenue.