Here is the example how it should look like:
1- Two major processes of reasoning, deductive and inductive, are important for theory construction and observation testing.
a. The deductive approach starts with specific data from which theories can be generated.
b. The inductive approach starts from theories and proceeds to generate predictions based on these theories.
c. Both deductive and inductive reasoning are the same.
d. Using the Agency Theory to build testable hypotheses about bonus plans and managers’ behavior is an example of employing deductive reasoning.
Correct Answer: D