Final answer:
The word that represents the business owners' rights to a company's assets is 'equity'. It reflects the shareholder's claim on the company's assets and profits after liabilities have been settled.
Step-by-step explanation:
The word that describes the rights of the business owners or owners to the assets of a company is equity. In the context of a corporation, equity represents ownership interest held by shareholders, which entails a share of any profits generated by the company in the form of dividends, as well as a claim on assets after all liabilities have been paid off.
Equity is essentially the net worth or book value of a company and can be understood by the accounting equation Assets = Liabilities + Equity. Hence, when business owners sell their business and repay all outstanding loans, what remains is their equity in the business.
Equity represents the ownership interest in a business and is calculated by subtracting liabilities from assets on the balance sheet. It is the amount of money that would be left over if all debts were paid off.
Therefore the correct answer is 4) equity.