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entity theory

Q: Is Subway an entity theory or proprietary theory?
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entity theory

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PROPRIETARY THEORY

PROPRIETARY THEORY is where no fundamental distinction is drawn between a legal entity and its owners, i.e. the entity does not exist separately from the owners for accounting purposes. The primary focus is to report information useful to the owners, and therefore the financial statements are prepared from their perspective.

ENTITY THEORY

ENTITY THEORY is where a legal entity is regarded as having a separate existence from the owners. The financial statements are prepared from the perspective of the entity, not its owners.

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How would a person who aligns him or herself with the incremental theory, view his or her sense of freedom differently from a person who aligns him or herself with the entity theory?

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there are four requirements that have to be met in the declaratory theory in order for an entity to become a state. Taiwan has met all four requirements and SHOULD be recognised as a state.

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when entity is minimum of a row & respective column is maximum i.e. pay off matrix

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