Essay on Bus310 Accounting Theory and Accountability

Identify the ways in which the theory can be applied and when it is best to

Haralambos and Holborn (2008) defined a theory as a set of ideas that seek to explain the way things work. A Sociological theory is therefore a set of ideas which seek to explains how society, or how

Theories serve numerous purposes. They give meaning to observations; and take what we see in particular settings and relate it to what we already understand. They help to simplify complex information making it easier to comprehend. Theories connect studies to one another, building off information that is already known. Furthermore theories are used as a framework in order to build concepts, which are interrelated. They allow us to understand the bigger picture of our findings. Meaning we understand what is going on and why. Nevertheless theories within criminology are often more difficult to test compared to ones within the physical science. It is difficult to understand and experiment with why people commit crimes, the only thing we have

“A theory is an organized set of ideas that seek to explain a particular phenomenon. Theories are typically formulated when there is no empirical evidence” (p.8, book). Professionals must be able to understand the theories and research how to evaluate which theory to use in practice.

A factor that should be considered when testing of theories is determining whether one theory is better than another theory (Bohm, 2011.) “Explanatory power is also called the generalizability or scope of a theory, and theories often are judged by this criterion: The greater the explanatory power, generalizability, or scope of a theory, the better the theory” (Bohm, 2011.) Explanatory power theory to crime refers to the ability of a theory about a crime to either explain and predict various crime in different places or different times (Bohm, 2011.)

The term theory has a broad meaning. Simply it refers to notion or proposal. However, experts in different fields have given various views on the term theory. For instance, scientists describe that theory means experienced and testable concepts which explain about an event or incident. Rogers (2003) has identified the adoption as the primary level of behavioral consumption to something new which can be considered as innovation. According to OECD (1999) innovation means something new knowledge found and it would be worth; could use in societies in an economic environment. To make use these innovations, first people should know about these innovations. Accordingly, the term diffusion is important. Rogers (2003)

Among theorists it is widely believed that the best theory is the simplest one that is capable of describing, explaining, understanding, and perhaps predicting future events or instigating change.

A theory is defined by the Merriam Webster Medical Dictionary as a working premise that is considered plausible based on evidence, facts, or conceptual analysis and is acknowledged as a base for testing (Merriam Webster Dictionary, 2017). Walker and Advent (2011) further explain theory in the form of theory synthesis. Theory synthesis brings together information from multiple sources, and new theories may arise from the foundation of the initial theory (Walker & Advent, 2011).

When it comes to defining theory, researchers assign a number of means meanings, have numerous views, and define varying criteria (Gay & Weaver, 2011). In fact, differences of opinion are not limited to the definition of theory; but also, (a) the nature of theory; (b) the criteria for establishing good theory; (c) its purpose; and, (d) the best method for theory-building (Gay & Weaver, 2011). Why are there such differing opinions about theory? Gay

The most effective theory which I feel is more practical and applicable is the following

devising methods for operationalising the theory’s concepts , deriving hypotheses from its propositions and subjecting these hypotheses to empirical verification . The second concludes that it rejects the theory principle in favour of social control or combined theories.

Rudestam & Newton (2014) believe that “theories are premises to account for data or more informally explanations of how things work based on data” (p.7). The authors point out that theory is based on the relationships between concepts. The theory is what the researcher concludes is the resolution to the inquiry that their endeavor is tackling within their field. Theory creates how a researcher applies concepts to see if it fits to ensure the rest of the project runs smoothly. Graham (2011) suggests that theory will identify variables which will be useful in predicting the outcome relevant to a problem.

Theories are important in the business life. With theory the organization can look out and what first steps should be. Also theory can expect the result for actions.

One justification for preferring universal theories is Ockham’s Razor. A formulation of the principle that Ockham himself used is that “plurality is not to be assumed without necessity.” (Baggini & Fosl, p., 105) While Ockham’s Razor is not to be considered correct with certainty, for guidance and justification its value has been well established over centuries of use. In light of the principle of Ockham’s Razor, preference should be given to a single universal theory over multiple ad hoc theories, certeris paribus.

We often hear someone say “That’s just a theory” or on the contrary - “In theory and in practice, it always works.” This term may indeed hold in itself a somewhat ambiguous undertone, and lead to confusion and misuse. Let’s look at the origin of the word; according to an etymology dictionary, theory derives from the Greek “theoréo” which means ‘to look at’, ‘to observe’. The definition tells us that one must firstly observe a phenomenon so that a theory about a certain aspect of it could form. There are essentially three forms of theories, and although they are different, all of them have one thing in common – a theory is always born with observation.