Positive Accounting Theory Quiz

Managers are primarily motivated by ethical considerations.

Managers always make decisions based on the best interest of the company.

Managers are indifferent to financial incentives.

Managers are motivated by self-interest and seek to maximize their own utility. (correct)

To reduce the need for contractual agreements. (correct)

To facilitate efficient communication between stakeholders.

To align the interests of managers and shareholders.

To provide accurate financial information for decision-making.

To illustrate the complex web of formal and informal agreements within the organization. (correct)

To emphasize the role of accounting in enforcing contractual obligations.

To highlight the importance of formal written contracts in business operations.

To emphasize the legal nature of business relationships within the organization.

<p>Efficiency considerations and opportunistic motivations.</p> Signup and view all the answers

<p>To manipulate financial statements for personal gain.</p> Signup and view all the answers