b) What is the difference between developing a theory by induction and developing a theory by deduction? (Marks 15)

Question 2: (a) What is a conceptual framework of accounting? (b) What is the difference between an accounting standard and a conceptual framework of accounting? (Marks 15)

Question 3: (a) What does it meant to say that an organization can be represented as 'nexus of contracts''? (b) Explain the management bonus hypothesis and the debt hypothesis of Positive Accounting Theory? (Marks 15)

Question 4: Legitimacy Theory, Stakeholder Theory and Institutional Theory are considered to be system-oriented theories. What does this mean? (Marks 15)