Final answer:
Owner's equity represents the investment of the sole proprietor in businesses that are not incorporated.
Step-by-step explanation:
The investment of the sole proprietor in businesses that are not incorporated is identified as Owner's equity.
Owner's equity represents the owner's share of the business assets after deducting liabilities. It includes the initial capital invested by the owner, as well as any additional investments made by the owner in the business.
For example, if a sole proprietor invests $10,000 of their own money to start a business, that $10,000 would be considered the owner's equity in the business.