Chapter 8 - System-oriented accounting theory P2 | Take the Quiz

Which of the following statements is characteristic of Stakeholder 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.

The moral perspective of Stakeholder Theory holds that all stakeholders have the right to be treated fairly by an organisation:

A. Provided this improves the organisation's financial performance

B. Regardless of the impact on the organisation's financial performance

C. Because, in the long run, this will improve the organisation's financial performance

D. None of the given options are correct.

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

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

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

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.

Institutional Theory suggests which of the following?

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.

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

Which of the following is false?

A. Isomorphism refers to the adaptation of an institutional practice by an organisation.

B. Normative isomorphism refers to when organisations adopt particular institutional practices.

C. Coercive isomorphism refers to when organisations change their practices due to stakeholder pressure.

D. Mimetic isomorphism refers to when organisations copy the institutional practices of other organisations for competitive advantage practices.

An organisation disclosing social and environmental information because a competitor was gaining a competitive advantage by doing so, is an example of

A. Mimetic isomorphism

B. Coercive isomorphism

C. Normative isomorphism

D. None of the given options are correct.

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

A. Mimetic isomorphism

B. Coercive isomorphism

C. Normative isomorphism

D. None of the given options are correct.

Which of the following statement is false?

A. Legitimacy Theory, Stakeholder Theory and Institutional Theory are all examples of 'systemsoriented theories'.

B. A systems-oriented view of the organisation and society focuses on the role of information and disclosure in the relationship between organisations, the State, individuals and groups

C. Within a systems-based perspective, the entity is assumed to be influenced by, and in turn to have an influence on, the society in which it operates

D. Within Legitimacy Theory, Stakeholder Theory and Institutional Theory, accounting disclosure policies are not considered to constitute a strategy to influence the organisation's relationships with the other parties with which it interacts.

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Chapter 8 - System-oriented accounting theory P2

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