oboloo Glossary

Business Equity

oboloo Glossary

Business Equity

Business Equity is a measure of the assets and liabilities of a business that can be used to determine its net worth. It is calculated by subtracting all liabilities from total assets, resulting in a company’s total net value. This number allows investors, creditors, and other stakeholders to see the current financial state of the business and can help them make meaningful decisions about how the company should be managed or invested in. In essence, equity represents a company’s value after all debts are paid off – giving it an accurate measurement of its true worth.