Answer:
Stockholder theory
Explanation:
Stockholder theory
This theory was introduced in 1960's by Milton Friedman ,
According to this theory , The managers of the corporation have a duty to maximize the returns of the shareholder .
Therefore , due to the cyclic nature of the business hierarchy , the corporation is mainly responsible to its stockholders .
2. It engages in business activities from which it may earn revenues and incur expenses.
Answer:
c. as a deduction from Stockholders’ Equity
Explanation:
The treatment of the treasury stock in the balance sheet is that it is deducted from the stockholder equity as it shows the buy back position of the common stock
The other things i.e retained earnings, additional paid in capital is to be added as it increased the balance of the stockholder equity
Therefore in the given case, the option C is correct
