Home  | Term of the Day | |||
| net worth [list="padding:0 0 0 19px"] [*]For a company, total assets minus total liabilities. Net worth is an important determinant of the value of a company, considering it is composed primarily of all the money that has been invested since its inception, as well as the retained earnings for the duration of its operation. Net worth can be used to determine creditworthiness because it gives a snapshot of the company's investment [/list] ... | ||||
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| Usage Example John had a net worth of one million dollars and was able to obtain a loan twice that amount for a new house. As long as his other debts remain low, he will be able to make the payments. | ||||
Term of the Day
Lobo- Moderator
- Posts : 28411
Join date : 2013-01-12
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