Which of the Following Is an Advantage of the Partial

question 41

Multiple Choice

Which of the following is an advantage of the partial least squares method of structural equation modeling?

• A) Solutions are possible with the simplest models, which are based on a few questions.
• B) The method is parametric, so it can be applied to data that is not normally distributed.
• C) The measurement requirements are very rigid and are designed to work exclusively with nominal data.
• D) Only one type of analysis is possible.
• E) Solutions can be obtained with both small and large samples.

---

Definitions:

Bondholders

Individuals or entities that hold the debt securities issued by corporations or governments, known as bonds.

Gain or Loss

The financial result from a transaction when the selling price of an asset differs from its book value.

Bonds

Long-term debt securities issued by corporations and governments to raise funds, paying interest to holders.

Effective-Interest Method

An accounting practice used to amortize the discount or premium on bonds payable over the bond’s life, reflecting a constant rate of interest.