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What is the term for Capital (net worth; owner's equity; proprietorship)?

a) Financial assets
b) Operational funds
c) Owner's investment
d) Business liabilities

User JPBelanger
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Final answer:

The term for Capital is 'Owner's investment', representing the owners' claim on business assets and recorded as owner's equity or net worth on a company's balance sheet.

Step-by-step explanation:

The term for Capital (net worth; owner's equity; proprietorship) in a business context is c) Owner's investment. This term refers to the money and resources invested by the owners of the company, which represents their claim on the assets of the business. In accounting, this is reflected in a company's balance sheet, where net worth or owner's equity is calculated as the total assets minus total liabilities. It's recorded on the right side in a T-account as part of the equity section. Companies can enhance their owner's investment by various means such as profits, additional investments, or raising financial capital through issuing shares or taking loans.

User Mwspencer
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