Final answer:
Shareholders' equity is best represented by 'c) Net worth,' which is the monetary value left after a company's assets are used to pay off its liabilities. In the context of a bank, this is referred to as bank capital and calculated as the difference between the bank's assets and liabilities.
Step-by-step explanation:
When considering shareholders' equity within the context of a corporation's financial structure, the correct term that represents this concept is c) Net worth. Shareholders' equity, or simply equity, reflects the residual interest in the assets of a company after deducting liabilities.
It can be thought of as the monetary value that would remain if the company liquidated all its assets and paid off all its debts; this is the net worth of the company available to shareholders. On a bank's balance sheet, equity or net worth is often referred to as bank capital. It is calculated as the difference between the bank's assets—such as cash, reserves, loans made to customers, and bonds—and its liabilities, including debts like deposits made by customers.