Equity in business refers to the ownership stake in a company. It represents the residual interest in the assets of the company after deducting its liabilities. This can be calculated as the difference between the company's total assets and total liabilities. Shareholders' equity, also known as owners' equity for privately held companies, is the amount of money that would be returned to a company's shareholders if all of the company's assets were liquidated and all its debts were paid off
. It can also be seen as a measure of a company's net worth and financial health, and is an important factor for investors in assessing the value of a company and its ability to pay off debts and scale
