What is the combined investment of a company's owners, including common stock and retained earnings?

• A. Net Worth
• B. Owners' Equity
• C. Shareholders' Equity
• D. Capital Structure

Answer: (B)

Owners' equity represents the owners' claim on the company's assets after all liabilities are paid. It reflects the combined investment of the owners and is made up of contributed capital (such as common stock) and retained earnings (profits kept in the business). This total shows what the owners have invested and earned in the company. Net worth is a broader term that can be ambiguous in accounting, and capital structure describes how the business is financed rather than the size of the owners' stake. In corporations, this concept is often called shareholders' equity, but the phrasing here uses owners' equity to describe the owners' stake, which makes it the best fit.