An Argument to Support the Requirement That All Companies Over

question 5

Multiple Choice

An argument to support the requirement that all companies over a certain size should adhere to accounting standards is:

• A) Larger companies have greater political and economic importance and this increases the demand for financial information about the entity by external users.
• B) Larger companies can afford to pay for complex accounting systems and the experts necessary to design and maintain them.
• C) The conceptual framework and accounting standards are designed for larger enterprises.
• D) The Australian Securities and Investment Commission should only be responsible for large enterprises.
• E) All of the given answers.

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Definitions:

Work-Related Tensions

Stresses or conflicts arising from job demands, role expectations, or workplace relationships.

Upper Echelons

A theory suggesting that an organization is a reflection of its top executive's personal characteristics, values, and background.

Self-Managed Teams

Groups of workers who operate without direct supervision, often responsible for a project or function as a whole.

Organization

An organized group of people with a particular purpose, such as a business or government department.