Which One of the Following Is Not a Major Factor

question 47

Multiple Choice

Which one of the following is not a major factor in judging a theory? A theory must

• A) provide a guide for systematizing and interrelating laws
• B) combine individual bits of empirical information into a set of constructs that provide for greater understanding
• C) help identify the proper questions to be asked in the context of specific research
• D) not decrease in usefulness in the light of new knowledge

---

Definitions:

Fixed Expenses

Costs that do not change with the level of production or sales over a certain period, such as rent, salaries, and insurance.

Sales

The total amount received from selling goods or services over a given period.

Residual Income

The income that exceeds the minimum required return on an investment or business segment.

Residual Income

The amount of income that exceeds the minimum rate of return expected on a project or investment.