Owner's Capital
Money invested by owner/shareholders in business.
Formula
Owner's Capital = Total Assets − Total Liabilities
Real World
When James Dyson founded his vacuum cleaner business, he invested his own savings over years of development — putting personal capital at risk before the product ever reached market.
Exam Focus
State that owner's capital carries the highest risk (last to be repaid in insolvency) — this analysis earns evaluation marks.
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