The Difference Between Positive Accounting Theory and Legitimacy Theory Is

question 18

Multiple Choice

The difference between Positive Accounting Theory and Legitimacy Theory is that:

• A) Legitimacy Theory does not rely on the assumption that all action is driven by individual self-interest.
• B) Legitimacy Theory makes no assumptions about the efficiency of markets.
• C) Legitimacy Theory suggests that organisations have a 'social contract' with society.
• D) All of the given options are correct.

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Definitions:

Pesticide Spray

The application of chemicals designed to control, repel, or kill pests on plants, soil, or other surfaces.

Contributory Negligence

Contributory negligence is a legal doctrine that denies or limits a plaintiff's ability to recover damages if their own negligence contributed to the harm they suffered.

Reasonable Person

A hypothetical individual in society who exercises average care, skill, and judgment in conduct and who serves as a comparative standard for determining liability.

Res Ipsa Loquitur

A legal doctrine allowing the presumption of negligence in a case where the exact cause of harm is unknown but it is clear the defendant had control.