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Owners' contributions to the organization in combination with income earned and retained to grow and develop the firm represent specific term.

a) Deferred income
b) Operating income
c) Owner's equity
d) Retained earnings

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User Maxsap
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1 Answer

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Final answer:

Owner's equity best describes owners' contributions along with retained earnings for a company's growth. It's a stakeholder's share in the business, consisting of initial capital and profits reinvested instead of distributed as dividends.

Step-by-step explanation:

The correct answer to the question is c) Owner's equity. Owners' contributions and the income earned and retained for the growth of the organization are known as owner's equity. This represents the owner's stake in the company and consists of the initial investment, additional paid-in capital, and retained earnings, which are the profits that have not been distributed to shareholders as dividends but are reinvested in the business.

A small company might reinvest these funds for future growth versus paying out dividends, which makes owner's equity crucial for such businesses. Furthermore, sources like venture capital can also be a way to raise capital for growth without being required to make regular payments, unlike debt financing through bonds or loans.

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User Gareth
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