Question 1

The idea of the 'social contract' is that corporations only exist because they benefit:

Accepted Answer

A)  Shareholders 
B)  Governments 
C)  Managers 
D)  Society 
A)  Shareholders 
B)  Governments 
C)  Managers 
D)  Society D

Question 2

Which of the following statements is false?

Accepted Answer

A)  Legitimacy Theory is derived from 'classical' political economy theory. 
B)  Legitimacy Theory suggests that organisations will act in a way that society perceives as legitimate. 
C)  Legitimacy Theory relies upon the notion of the 'social contract'. 
D)  Legitimacy Theory asserts that organisations will attempt to ensure that society perceives their actions as 'legitimate'. 
A)  Legitimacy Theory is derived from 'classical' political economy theory. 
B)  Legitimacy Theory suggests that organisations will act in a way that society perceives as legitimate. 
C)  Legitimacy Theory relies upon the notion of the 'social contract'. 
D)  Legitimacy Theory asserts that organisations will attempt to ensure that society perceives their actions as 'legitimate'. B

Question 3

Which of the following statements is characteristic of Stakeholder Theory?

Accepted Answer

A)  Stakeholder Theory has both a normative and positive perspective. 
B)  Stakeholder Theory has neither a normative nor positive perspective. 
C)  Stakeholder Theory is a normative theory. 
D)  Stakeholder Theory is a positive theory. 
A)  Stakeholder Theory has both a normative and positive perspective. 
B)  Stakeholder Theory has neither a normative nor positive perspective. 
C)  Stakeholder Theory is a normative theory. 
D)  Stakeholder Theory is a positive theory. A

Question 4

The difference between the managerial and moral perspectives of Stakeholder Theory is that:

Accepted Answer

A)  The moral perspective is empirically testable 
B)  The moral perspective is more 'organisation-centred' 
C)  The managerial perspective is empirically testable 
D)  The managerial perspective holds that all stakeholders have certain minimum rights that must not be violated 
A)  The moral perspective is empirically testable 
B)  The moral perspective is more 'organisation-centred' 
C)  The managerial perspective is empirically testable 
D)  The managerial perspective holds that all stakeholders have certain minimum rights that must not be violated

Question 5

An organisation disclosing social and environmental information in response to societal expectations is an example of:

Accepted Answer

A)  Mimetic isomorphism 
B)  Coercive isomorphism 
C)  Normative isomorphism 
D)  None of the given options are correct. 
A)  Mimetic isomorphism 
B)  Coercive isomorphism 
C)  Normative isomorphism 
D)  None of the given options are correct.

Question 6

An organisation disclosing social and environmental information in response to shareholder demands is an example of:

Accepted Answer

A)  Mimetic isomorphism 
B)  Coercive isomorphism 
C)  Normative isomorphism 
D)  None of the given options are correct. 
A)  Mimetic isomorphism 
B)  Coercive isomorphism 
C)  Normative isomorphism 
D)  None of the given options are correct.

Question 7

The 'legitimacy gap' of a corporation will narrow when:

Accepted Answer

A)  A corporation discloses good news about its behaviour but its actual behaviour declines. 
B)  A corporation discloses bad news about its behaviour but its actual behaviour improves. 
C)  Societal expectations of appropriate corporate behaviour increase. 
D)  None of the given options are correct. 
A)  A corporation discloses good news about its behaviour but its actual behaviour declines. 
B)  A corporation discloses bad news about its behaviour but its actual behaviour improves. 
C)  Societal expectations of appropriate corporate behaviour increase. 
D)  None of the given options are correct.

Question 8

Institutional Theory suggests which of the following?

Accepted Answer

A)  While organisational structures are initially varied, they are gradually homogenised by competition, the state and professions. 
B)  While organisational structures are initially homogenous, they are gradually varied by competition, the State and professions. 
C)  The organisational structure is determined by institutional factors such as management style and organisational culture. 
D)  The organisational structure is determined by the organisation's most powerful stakeholders. 
A)  While organisational structures are initially varied, they are gradually homogenised by competition, the state and professions. 
B)  While organisational structures are initially homogenous, they are gradually varied by competition, the State and professions. 
C)  The organisational structure is determined by institutional factors such as management style and organisational culture. 
D)  The organisational structure is determined by the organisation's most powerful stakeholders.

Question 9

Which of the following is not a means by which an organisation may attempt to legitimise its activities?

Accepted Answer

A)  Adapting its output, goals and methods of operation to conform to prevailing definitions of legitimacy. 
B)  Attempting, through communication, to alter the definition of social legitimacy so that it conforms to the organisation's present practices, outputs and values. 
C)  Asserting its right to operate under the existing regulatory framework that has been determined by society. 
D)  Attempting, through communication, to become identified with symbols, values or institutions that have a strong base of legitimacy. 
A)  Adapting its output, goals and methods of operation to conform to prevailing definitions of legitimacy. 
B)  Attempting, through communication, to alter the definition of social legitimacy so that it conforms to the organisation's present practices, outputs and values. 
C)  Asserting its right to operate under the existing regulatory framework that has been determined by society. 
D)  Attempting, through communication, to become identified with symbols, values or institutions that have a strong base of legitimacy.

Question 10

Which of the following is not true about Political Economy Theory?

Accepted Answer

A)  The perspective embraced is that society, politics and economics are separable, and economic issues can be meaningfully investigated in the absence of considerations about the political, social and institutional framework in which the economic activity takes place. 
B)  By considering the political economy, a researcher is able to consider broader (societal) issues that impact on how an organisation operates and what information it elects to disclose. 
C)  Political Economy Theory has been divided into two broad streams: 'classical' and 'bourgeois'. 
D)  The political economy perspective perceives accounting reports as social, political and economic documents. 
A)  The perspective embraced is that society, politics and economics are separable, and economic issues can be meaningfully investigated in the absence of considerations about the political, social and institutional framework in which the economic activity takes place. 
B)  By considering the political economy, a researcher is able to consider broader (societal) issues that impact on how an organisation operates and what information it elects to disclose. 
C)  Political Economy Theory has been divided into two broad streams: 'classical' and 'bourgeois'. 
D)  The political economy perspective perceives accounting reports as social, political and economic documents.

Question 11

According to Legitimacy Theory,the annual report is:

Accepted Answer

A)  A means to assist users in legitimately allocating scarce resources 
B)  A tool to legitimise the ongoing operations of the organisation 
C)  A legitimate account of the activities of the organisation for the period 
D)  All of the given options are correct. 
A)  A means to assist users in legitimately allocating scarce resources 
B)  A tool to legitimise the ongoing operations of the organisation 
C)  A legitimate account of the activities of the organisation for the period 
D)  All of the given options are correct.

Question 12

The rate of institutional isomorphism is increased when firms:

Accepted Answer

A)  Are highly dependent on the institutional environment 
B)  Exist under high uncertainty or ambiguous goals 
C)  Rely extensively on professionals 
D)  All of the given options are correct. 
A)  Are highly dependent on the institutional environment 
B)  Exist under high uncertainty or ambiguous goals 
C)  Rely extensively on professionals 
D)  All of the given options are correct.

Question 13

Legitimacy Theory cannot be applied to:

Accepted Answer

A)  Financial disclosure practices 
B)  Social disclosure practices 
C)  Environmental disclosure practices 
D)  None of the given options are correct. 
A)  Financial disclosure practices 
B)  Social disclosure practices 
C)  Environmental disclosure practices 
D)  None of the given options are correct.

Question 14

Which of the following is true about Stakeholder Theory?

Accepted Answer

A)  Stakeholder Theory can help managers in solving ethical problems, such as the environment, and gives managers a practical framework for assessing and balancing interests as long as normative principles are the foundation upon which decisions are made. 
B)  Normative principles are incorporated into organisational decision making, and it allows managers to give an unbalanced or biased weighting of issues in order to preserve ethical integrity. 
C)  Assessing stakeholders is often based on descriptive, not normative, assumptions. 
D)  All of the given options are correct. 
A)  Stakeholder Theory can help managers in solving ethical problems, such as the environment, and gives managers a practical framework for assessing and balancing interests as long as normative principles are the foundation upon which decisions are made. 
B)  Normative principles are incorporated into organisational decision making, and it allows managers to give an unbalanced or biased weighting of issues in order to preserve ethical integrity. 
C)  Assessing stakeholders is often based on descriptive, not normative, assumptions. 
D)  All of the given options are correct.

Question 15

Managerial Stakeholder Theory suggests that annual reports will be used to:

Accepted Answer

A)  Gain the support of powerful stakeholders 
B)  Report on the activities of management with respect to each stakeholder 
C)  Explain why profits may have been sacrificed in order to respect the minimum rights of some stakeholders 
D)  All of the given options are correct. 
A)  Gain the support of powerful stakeholders 
B)  Report on the activities of management with respect to each stakeholder 
C)  Explain why profits may have been sacrificed in order to respect the minimum rights of some stakeholders 
D)  All of the given options are correct.

Question 16

Based on a joint consideration of Media Agenda Setting Theory and Legitimacy Theory,which of the following statements is correct?

Accepted Answer

A)  According to Legitimacy Theory management uses the annual report as a tool to legitimise the ongoing operations of the organisation, and according to Media Agenda Setting Theory the media are able to influence community perceptions about issues such as the environment. 
B)  Community concerns about the environmental performance of a specific firm in an industry will also impact on the disclosure strategies of firms across that industry. 
C)  We should find a relationship between the extent of disclosure of social and environmental issues within the annual report and the media attention given to those issues. 
D)  All of the given options are correct. 
A)  According to Legitimacy Theory management uses the annual report as a tool to legitimise the ongoing operations of the organisation, and according to Media Agenda Setting Theory the media are able to influence community perceptions about issues such as the environment. 
B)  Community concerns about the environmental performance of a specific firm in an industry will also impact on the disclosure strategies of firms across that industry. 
C)  We should find a relationship between the extent of disclosure of social and environmental issues within the annual report and the media attention given to those issues. 
D)  All of the given options are correct.

Question 17

Which statement describes the relationship between Institutional Theory (IT),Legitimacy Theory (LT)and Stakeholder Theory (ST)?

Accepted Answer

A)  IT is a normative theory while LT and ST are positive theories. 
B)  IT is a more detailed version of LT, and is broadly consistent with ST. 
C)  The mechanisms IT suggests firms will use to align the perceptions of their performance with society's values could include the mechanisms suggested by LT and ST. 
D)  The mechanisms IT suggests firms will use to align the perceptions of their performance with society's are different from the mechanisms suggested by LT and ST. 
A)  IT is a normative theory while LT and ST are positive theories. 
B)  IT is a more detailed version of LT, and is broadly consistent with ST. 
C)  The mechanisms IT suggests firms will use to align the perceptions of their performance with society's values could include the mechanisms suggested by LT and ST. 
D)  The mechanisms IT suggests firms will use to align the perceptions of their performance with society's are different from the mechanisms suggested by LT and ST.

Question 18

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

Accepted Answer

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. 
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.

Question 19

In relation to Political Economy Theory,which of the following statements is false?

Accepted Answer

A)  Political Economy Theory views society, politics and economics as inseparable. 
B)  Political Economy Theory is derived from Positive Accounting Theory. 
C)  Legitimacy Theory and Stakeholder Theory are derived from Political Economy Theory. 
D)  Political Economy Theory can be divided into 'classical' and 'bourgeois' political economy. theories 
A)  Political Economy Theory views society, politics and economics as inseparable. 
B)  Political Economy Theory is derived from Positive Accounting Theory. 
C)  Legitimacy Theory and Stakeholder Theory are derived from Political Economy Theory. 
D)  Political Economy Theory can be divided into 'classical' and 'bourgeois' political economy. theories

Question 20

An example of a legitimising symbol would be:

Accepted Answer

A)  The World Wide Fund for Nature assessing compliance with the Australian Minerals Industry Code 
B)  Monsanto employing the former CEO of Greenpeace Australia as a consultant 
C)  Changing the name of a company from 'British Petroleum' to 'Beyond Petroleum' 
D)  All of the given options are correct. 
A)  The World Wide Fund for Nature assessing compliance with the Australian Minerals Industry Code 
B)  Monsanto employing the former CEO of Greenpeace Australia as a consultant 
C)  Changing the name of a company from 'British Petroleum' to 'Beyond Petroleum' 
D)  All of the given options are correct.

The idea of the 'social contract' is that corporations only exist because they benefit:

Which of the following statements is false?

Which of the following statements is characteristic of Stakeholder Theory?

The difference between the managerial and moral perspectives of Stakeholder Theory is that:

An organisation disclosing social and environmental information in response to societal expectations is an example of:

An organisation disclosing social and environmental information in response to shareholder demands is an example of:

The 'legitimacy gap' of a corporation will narrow when:

Institutional Theory suggests which of the following?

Which of the following is not a means by which an organisation may attempt to legitimise its activities?

Which of the following is not true about Political Economy Theory?

According to Legitimacy Theory,the annual report is:

The rate of institutional isomorphism is increased when firms:

Legitimacy Theory cannot be applied to:

Which of the following is true about Stakeholder Theory?

Managerial Stakeholder Theory suggests that annual reports will be used to:

Based on a joint consideration of Media Agenda Setting Theory and Legitimacy Theory,which of the following statements is correct?

Which statement describes the relationship between Institutional Theory (IT),Legitimacy Theory (LT)and Stakeholder Theory (ST)?

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

In relation to Political Economy Theory,which of the following statements is false?

An example of a legitimising symbol would be:

Introduction to Financial Accounting Theory

The Financial Reporting Environment

The Regulation of Financial Accounting

International Accounting

Measurement Issues: Accounting for the Effects of Changing Prices and Market Conditions

Normative Theories of Accounting: The Case of Conceptual Framework Projects

Positive Accounting Theory

Extending Corporate Accountability: The Incorporation of Social and Environmental Factors Within External Reporting

Reactions of Capital Markets to Financial Reporting

Reactions of Individuals to Financial Reporting: An Examination of Behavioural Research in Accounting

Critical Perspectives of Accounting

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Exam 8: Unregulated Corporate Reporting Decisions: Considerations of Systems-Oriented Theories

The idea of the 'social contract' is that corporations only exist because they benefit:

Which of the following statements is false?

Which of the following statements is characteristic of Stakeholder Theory?

The difference between the managerial and moral perspectives of Stakeholder Theory is that:

An organisation disclosing social and environmental information in response to societal expectations is an example of:

An organisation disclosing social and environmental information in response to shareholder demands is an example of:

The 'legitimacy gap' of a corporation will narrow when:

Institutional Theory suggests which of the following?

Which of the following is not a means by which an organisation may attempt to legitimise its activities?

Which of the following is not true about Political Economy Theory?

According to Legitimacy Theory,the annual report is:

The rate of institutional isomorphism is increased when firms:

Legitimacy Theory cannot be applied to:

Which of the following is true about Stakeholder Theory?

Managerial Stakeholder Theory suggests that annual reports will be used to:

Based on a joint consideration of Media Agenda Setting Theory and Legitimacy Theory,which of the following statements is correct?

Which statement describes the relationship between Institutional Theory (IT),Legitimacy Theory (LT)and Stakeholder Theory (ST)?

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

In relation to Political Economy Theory,which of the following statements is false?

An example of a legitimising symbol would be:

Introduction to Financial Accounting Theory

The Financial Reporting Environment

The Regulation of Financial Accounting

International Accounting

Measurement Issues: Accounting for the Effects of Changing Prices and Market Conditions

Normative Theories of Accounting: The Case of Conceptual Framework Projects

Positive Accounting Theory

Extending Corporate Accountability: The Incorporation of Social and Environmental Factors Within External Reporting

Reactions of Capital Markets to Financial Reporting

Reactions of Individuals to Financial Reporting: An Examination of Behavioural Research in Accounting

Critical Perspectives of Accounting

Filters