Legitimacy Theory and Stakeholder Theory May Both Generate Similar Hypotheses

question 28

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.
• E) All of the given Answers.

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Definitions:

Bailor

The person who temporarily transfers possession but not ownership of a property or good to another (the bailee) under a bailment agreement.

Bailee

A person or entity to whom personal property is delivered for a specified purpose without transfer of ownership.

Transfer Of Possession

The act of moving control or ownership of an asset from one party to another.

Bailee

A Bailee is a person or entity that has temporary possession of someone else's property under a bailment agreement.