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LSDefine

Simple English definitions for legal terms

shareholders' equity

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A quick definition of shareholders' equity:

Shareholders' equity, also known as owners' equity, is the total value of the owners' financial interests in a business. This includes the capital contributed by the owners and any retained earnings. To calculate owners' equity, you subtract the liabilities of the business from its assets. Owners' equity represents what is left over after all debts and obligations have been paid. It is the amount of money that the owners would receive if the business were to be sold or liquidated.

A more thorough explanation:

Shareholders' equity, also known as owners' equity, is the total value of the owners' financial interests in a business entity. It includes the capital contributed by the owners and any retained earnings.

Owners' equity is calculated by subtracting the total liabilities of a business entity from its total assets. The resulting amount represents the residual claim of the owners on the assets of the business.

For example, if a corporation has total assets worth $1 million and total liabilities of $500,000, its owners' equity would be $500,000. This represents the amount of money that the owners have invested in the business, as well as any profits that have been retained by the corporation.

Another example would be a small business owner who invests $50,000 of their own money into their business. If the business generates $10,000 in profits over the course of a year and the owner reinvests those profits back into the business, their owners' equity would be $60,000 ($50,000 initial investment + $10,000 retained earnings).

Overall, shareholders' equity is an important measure of a business's financial health and represents the value that the owners have in the business.

shareholder resolution | shareholder's liability

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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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