Asked by Karan Patel on Apr 27, 2024
Verified
In Scenario 9-2, in judging this C, the net worth of the business will be determined. The value of the assets minus the value of the liabilities will provide the determination for ______.
A) Capacity
B) Capital
C) Collateral
D) Conditions
Net Worth
The value of all assets a person or corporation owns, minus the liabilities they owe; a measure of financial health.
Liabilities
A debt owed by a business to another organization or individual.
Assets
Resources owned by a business or individual that have economic value and can provide future benefits.
- Comprehend the benchmarks and deliberations that lenders and investors employ in the evaluation of a small business for financial support.
Verified Answer
BW
Brittnay WhiteMay 02, 2024
Final Answer :
B
Explanation :
Capital is determined by the net worth of the business, which is calculated as the value of the assets minus the value of the liabilities. This shows the financial resources that the business owner has, which can be used to support the business operations and secure loans.
Learning Objectives
- Comprehend the benchmarks and deliberations that lenders and investors employ in the evaluation of a small business for financial support.