Question: Contracting theory‚ which forms part of the second wave in the positive theory of accounting‚ focuses among other things on agency theory. What is agency theory? Elaborate the components of agency costs as described by Jensen & Meckling (1976). Answer: Agency theory is based upon the more general contracting theory that the most cost effective form of organizing economic activity is through a firm based structure. Jensen & Meckling describe agency theory is a contract under one
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actions of individuals. According to structural functionalists‚ individuals have little to no control over the ways in which particular structures operate. Indeed‚ structural functionalists understand individuals in terms of social positions. For example‚ when the structural functionalists Kingsley Davis and Wilbur Moore discuss social stratification‚ they do not refer to individuals‚ but to the positions these individuals occupy. It is not individuals who are ranked‚ but positions that are ranked
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A conspiracy theory is a theory that explains an event as being the result of a plot by a covert group or organization or a belief that a particular unexplained event was caused by such a group according to the dictionary. Fears of conspiracies have been present in America since its birth‚ mostly focused around politics. For example‚ Andrew Jackson was confronted by an assassin in 1835‚ but the gun failed to fire. The man was committed an asylum after being judged insane. Soon after‚ however‚ two
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Six Recommendation on Motivation theory The Goal of this Article is to analyse the various Motivation Theories for employees in the workplace environment. It attempts not to just present yet another theory of work motivation‚ rather focusing on metatheory which is the processes through which we can build more valid‚ more complete and more practical theories. The authors of this article have drafted six recommendations that they believe and feel that are the best. It is in their
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Outline and evaluate social psychological theories of aggression Social Learning Theory Social Learning Theory is based on the fact that people learn from one another‚ via observation‚ imitation‚ and modeling. Social learning theory explains human behaviour in terms of continuous mutual interaction between cognitive‚ behavioral‚ and environmental influences. Outline of research: Bobo Doll experiment The Bobo doll experiment was conducted by Bandura and studied patterns of behaviour associated
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Piaget’s Theory Cognitive Development Process From a baby to an adult‚ the mental of human are changing continuously due to the demographic (age‚ gender‚ and education) and environmental factor (family influence and society influence). There are many types of cognitive development theory that use to prove the human’s mental stages of changing. In cognitive development theory‚ the theory that is focused on is Piaget’s theory of cognitive development. Piaget’s theory‚ which is the children cognitive
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Ariq Zaman MME 101 11/10/10 Ethical Theories The word ethics comes from the Greek word ethos‚ which means morals. Ethical theories are the basics of ethical analysis because they are the perspective from which guidance can be attained along the pathway to a decision. Each theory highlights different points such as forecasting the outcomes and following one ’s responsibilities to others in order to attain an ethically correct decision. “The moral rightness of an action‚ unlike the cultural
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LEADERSHIP THEORIES. 1. "Great Man" Theories: Have you ever heard someone described as "born to lead?" According to this point of view‚ great leaders are simply born with the necessary internal characteristics such as charisma‚ confidence‚ intelligence‚ and social skills that make them natural-born leaders. Great man theories assume that the capacity for leadership is inherent – that great leaders are born‚ not made. These theories often portray great leaders as heroic‚ mythic and destined to
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For the design research I have decided to choose color theory. As defined‚ color theory is a body of practical guidance to color mixing and the visual impacts of specific color combinations. Color theory is based on more subtractive color which is usually the color that we see around on a day to day life‚ or sometimes used in painting and printing. Color has played an important role in communication‚ psychology‚ and even physical health giving color power. Whether it is in interior design‚ graphic
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THE STAGES OF SIGMUND FREUD’S THEORY OF PSYCHOSEXUAL DEVELOPMENT INTRODUCTION Sigmund Freud (1856-1939) was a Viennese physician‚ trained in neurology that can be considered as the most influential of the psychodynamic theorists. He created an entirely new perspective on the study of human behavior‚ focusing on the unconscious instinct and urges rather than the conscious (Morris & Maisto‚ 1998). Freud stressed that human nature was based more on desire than reason and ones past experiences
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