Question

Shareholders' equity is another common term for ___________ equity.

a) Investor's
b) Company's
c) Owner's
d) Corporate's

Answer 1

Shareholders' equity is commonly referred to as owner's equity, which represents the value that shareholders would have in a corporation after debts and liabilities are settled.

Step-by-step explanation:

Shareholders' equity is another common term for owner's equity. The correct answer to the given question is c) Owner's. Shareholder's equity refers to the owners of a corporation, which is a business owned by shareholders who have limited liability for the company's debt but share in its profits. Equity in this context is the monetary value a shareholder would have after all debts and liabilities have been settled.