Which term describes the owner's equity in a business?

The term that describes the owner's equity in a business is "proprietorship." This term refers to the ownership interest in a business, representing the residual claims of the owners after all liabilities have been settled. In a sole proprietorship, the business and the owner are considered one entity, meaning that the owner's equity is directly linked to their investment and stake in the business.

In the context of business finances, owner’s equity reflects the net value of the company, which is crucial for understanding financial stability and potential growth. It encompasses the initial investments made by the owner, plus any retained earnings that have accumulated over time.

The other terms, while related to different aspects of a business, do not accurately describe owner’s equity. "Net income" pertains to the profit of the business after expenses have been deducted, which contributes to owner’s equity but is not the same thing. "Fixed asset" refers to long-term tangible assets used in operations, such as equipment or real estate, rather than equity itself. "Capital structure" involves the way a company finances its operations through different sources of funds, combining debt and equity, and may include ownership but is broader than the specific term for owner’s equity.