a) What is the difference between a normative theory and a positive theory?

b) Give an example of a normative theory in accounting and a positive theory in accounting.

2. Why do you, as an accounting student, need to know and understand the theories that relate to the practice of financial reporting? Provide an example to illustrate your answer.

3. a) What is a social contract and how does it relate to organisational legitimacy?

b) Explain two ways organisations can use corporate disclosure policy to maintain or regain organisational legitimacy?

add references in Hayward style