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Based on His Findings Presented with Moral Development,psychologist Lawrence Kohlberg

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Based on his findings presented with moral development,psychologist Lawrence Kohlberg identified the conventional level (age ten through adulthood)as the stage in which people are most concerned with how they are perceived by their peers and how one conforms to rules.


Definitions:

Owner-Manager

An individual who both owns a significant part of a company and is actively involved in its management.

Agency Relationship

A situation where one party, known as the agent, is authorized to act on behalf of another, called the principal, in dealing with third parties.

Normative Theories

Theoretical frameworks that prescribe how accounting processes should be conducted based on values, ethics, and ideal practices.

Deductive Reasoning

An approach to theory development that begins with a description of desired outcomes and leads to principles and, in turn, specific actions that should result in those desired outcomes.

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