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You are watching: Which of the following statements follows from the controllability principle?

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The purpose of this paper is to study controllability: the idea a manager should be evaluated based on that which she or he controls. We embed the managerial testimonial difficulty in a principal-agent setting and ask whether the optimal firm solution bears any type of logical relation to a casual interpretation of controllability. It does not. More to the suggest, the company frame compels us to look at indevelopment content. This information content perspective, upon reflection, agrees via our intuition, via our anecdotal impressions of exercise, and through the dictates of the principal-agent version. Additionally, tbelow is a well-characterized relation between indevelopment content and also a notion of manage. Hence, the information content perspective might be believed of as giving a precise definition of controllcapability.


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The Amerideserve to Accounting Association is the world"s biggest association of audit and organization educators, researchers, and also interested practitioners. A worldwide company, the AAA promotes education, research study, service, and also interaction in between education and learning and also exercise.Formed in 1916 as the Amerihave the right to Association of University Instructors in Accounting, the association started publishing the initially of its ten journals, The Accounting Review, in 1925. Ten years later, in 1935, the association readjusted its name to become the American Accounting Association.The AAA currently extends far past accounting, through 14 Sections addressing such issues as Indevelopment Solution, Artificial Intelligence/Expert Systems, Public Interest, Auditing, tax (the Amerihave the right to Taxation Association is a Section of the AAA), International Accounting, and Teaching and Curriculum. About 30% of AAA members live and occupational outside the United States.