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ReneA theory is a well-substantiated explanation for a phenomenon based on evidence and research, while an opinion is a personal belief or viewpoint that may not be backed by evidence or research. Theories are subject to testing and revision based on new evidence, while opinions are subjective and based on personal preferences or feelings.
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What is the difference between in Normative theory and historical cost theory?
Normative theory focuses on what should be done based on ethical, moral, or societal principles, while historical cost theory values assets at their original purchase price. Normative theory considers broader implications and ethical considerations, while historical cost theory is more concerned with financial accuracy and reliability.
What are the difference between relevance and irrelevance theory of dividend?
The relevance theory of dividends suggests that dividends impact a firm's value, investor preferences, and information signaling. In contrast, the irrelevance theory of dividends proposes that dividend policy does not affect a firm's value because investors are indifferent between dividends and capital gains.
What is the difference between a theory and data?
A theory is a well-supported explanation for phenomena based on observation, experimentation, and analysis. Data refers to the facts, figures, or information collected from experiments, surveys, or observations, which are used to support or refute a theory. In summary, a theory is an overarching explanation, while data are the specific observations that inform and test that theory.
What is the difference between Agency Theory and Stewardship Theory?
Agency theory focuses on the conflicts of interest that arise between principals (owners) and agents (managers) in an organization, highlighting the need for mechanisms to align their interests. Stewardship theory, on the other hand, emphasizes the alignment of interests between managers and shareholders, suggesting that managers act as stewards who will make decisions in the best interest of the organization.
What is the difference between equity theory and social exchange theory?
Equity theory focuses on the perception of fairness in social exchanges, where individuals compare their ratio of inputs and outcomes to those of others. Social exchange theory, on the other hand, emphasizes the rational calculation of rewards and costs in relationships, with individuals choosing those that provide the most benefits with the least costs. Both theories address relationships and interactions but differ in their emphasis on fairness perceptions versus rational decision-making.
