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    Explain the proprietary theory of equity.
    In what type of business is the proprietary theory of equity particularly applicable?
    Explain the entity theory of equity.
    Who is the center of interest with the entity theory of equity?

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    Explain the proprietary theory of equity.
    In what type of business is the proprietary theory of equity particularly applicable?
    Explain the entity theory of equity.
    Who is the center of interest with the entity theory of equity?

    Answer:

    Explain the proprietary theory of equity.

    The proprietary theory of equity assumes that firms and their owners are exactly identical. There is no separate distinction between the two. All assets and liabilities of the firm are the assets and liabilities of the owner. Emphasis is placed on profits of the firm, which belong solely to the owner and not to any other member of the entity. ...

    Solution Summary

    Explain the proprietary theory of equity.
    In what type of business is the proprietary theory of equity particularly applicable?
    Explain the entity theory of equity.
    Who is the center of interest with the entity theory of equity?

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