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

NEGATIVE AMORTIZATION is a loan repayment schedule in which the outstanding principal balance of the loan increases, rather than amortizing, because the scheduled monthly payments do not cover the full amount required to amortize the loan. The unpaid Interest is added to the outstanding principal, to be repaid later.

ASSESSED VALUE is the estimated value of property used for tax purposes.

Suggest a Term

Enter Search Term

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