What Is the Main Difference Between the Factor Analysts and Traditional

question 66

Multiple Choice

What is the main difference between the factor analysts and traditional theorists with regard to theory derivation?

• A) As compared to factor analysts, traditional theorists derive their theories primarily through statistical procedures and empirical data.
• B) As compared to traditional theorists, factor analysts derive their theories primarily through statistical procedures and empirical data.
• C) As compared to factor analysts, traditional theorists have not attempted to validate their theories with scientific research.
• D) As compared to traditional theorists, factor analysts have not attempted to validate their theories with scientific research.

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Definitions:

Investee Company

A company in which another company (the investor) holds a significant stake but does not have controlling interest.

Parent Company

An entity that owns enough voting stock in another corporation to control its management and operations.

Subsidiary Company

A company controlled by another company, referred to as the parent company, through ownership of more than 50% of its voting stock.

Marketable Securities

Financial instruments that are easily convertible into cash due to their high liquidity and short maturity period.