Ownership right in property.
Equity represents an investment made by a company's shareholders. His two components of capital are on the balance sheet. Contributed capital: Direct investment by the company owner. Owners receive shares in exchange for contributions to the company. Equity is the sum of what the original shareholders paid when they bought the company's shares, plus the profits the company has held over the years.
The term equity refers to fairness and justice as distinguished from equality. Equality means providing equality for all but justice means acknowledging that we all start from the same place and that imbalances do not have to be acknowledged and fixed. Equity is the amount invested or owned by the owner of the company. In a company's balance sheet, the difference between liabilities and assets shows how much equity the company has.
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