Legitimacy Theory and Stakeholder Theory May Both Generate Similar Hypotheses

question 72

Multiple Choice

Legitimacy Theory and Stakeholder Theory may both generate similar hypotheses to Positive Accounting Theory.The difference between PAT and the other two theories is that:

• A) different research methods are applied.
• B) PAT does not explicitly consider the organisation in its broader social context.
• C) PAT is the only theory that takes a 'positive' research perspective.
• D) PAT considers owners and managers who cannot be considered legitimate stakeholders.

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Definitions:

Great Depression

A severe worldwide economic downturn that began in 1929 and lasted until the late 1930s, marked by massive unemployment and a significant decline in economic activity.

Low Point

This refers to the lowest phase or level, often used in the context of economic cycles to describe the bottom of a recession.

1940s

A decade spanning from 1940 to 1949 characterized by significant events including World War II and the beginning of the Cold War, impacting global politics and economies.

Economic Growth

The increase in the production of goods and services in an economy over a period of time, typically measured as the percent change in GDP.