COMMERCE

THE EXCESS VALUE OF TOTAL ASSETS OVER TOTAL LIABILITIES IS

  • A. capital owned ✓
  • B. borrowed capital
  • C. paid-up capital
  • D. paid-up capital

 

The excess value of total assets over total liabilities is known as “capital owned.” This represents the net worth of a business or individual, calculated by subtracting total liabilities from total assets. Capital owned indicates the amount of equity or ownership interest in an entity after all debts and obligations have been settled.

Capital owned is a crucial financial metric that reflects the financial health and stability of an organization. It represents the funds that belong to the owners or shareholders of a company, which can be reinvested in the business or distributed as dividends. Understanding capital owned is essential for assessing the solvency and profitability of an entity, as well as for making informed investment decisions.

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