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a. Entity point of view b. fund theory c. proprietary point of view d. enterprise theory
option C is the right answer that c. proprietary point of view
The answer is option C. According to this Theory, The existance of Firm is only provide a means to carry transactions for the owner(properietor), and the net value of equity can be viewed by this equation.That is asset- liabilities = Equity (A balance sheet presentation).
c. proprietary point of view............................................................
Option 'c'.
C,Proprietary Point of View
Option C: Proporietory point of view: Applies to the single proporietorship and applies the persoanl relationship between the management and the owner. Under this theory equity is equal to the net worth of the owners.Thus Assets - Liablilites = Owner's Equity.
Answer is c. proprietary point of view
C: Make clear about owner right/ Claim over assests
Answer (C) is correct. The equation is based on the proprietary theory.
C
