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The Complete Idiot's Guide to MBA Basics, 3rd Edition by Tom Gorman

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Owner’s Equity

Owner’s equity refers to the financial stake the owners have in the company. The business has assets, and after you subtract what the business owes to anyone it owes money to, what is left is the owner’s stake. Note that this number can be zero or even negative if the company owes more than it has in assets. (That is, of course, a terrible situation that leads to bankruptcy if it’s not quickly corrected with substantial and profitable growth in sales or an infusion of capital from the owners or investors.)
 
Any corporation can issue stock. This includes any incorporated business, from a one-person company to a giant outfit that employs thousands of people and issues stock to the public. A corporation will always have an account ...

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