LEGITIMACY THEORY Definition

Bookmark and Share

LEGITIMACY THEORY posits that businesses are bound by the social contract in which the firms agree to perform various socially desired actions in return for approval of its objectives and other rewards, and this ultimately guarantees its continued existence.

Learn new Accounting Terms

FORESEEABLE is what may be reasonably anticipated.

TOP-DOWN BUDGETING is where budgets are created by starting from the highest level working towards the bottom using parametric relationships. A monetary value is placed on an individual unit (product, service, materials, and labor hour). An estimate of the number of units required is then converted to currency by multiplying the quantity of units by the unit price.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.