Under Which of the Theories of Equity Is a Manager's

question 3

Multiple Choice

Under which of the theories of equity is a manager's goals considered as important as those of the common stockholder.

• A) Proprietary theory.
• B) Commander theory.
• C) Entity theory.
• D) Enterprise theory.

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Definitions:

Accounting Equation

The accounting equation is a fundamental principle of accounting that represents the relationship between an entity's assets, liabilities, and equity (Assets = Liabilities + Equity).