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Owner's equity represents the portion of a company's assets that belong to the owner(s) after all liabilities have been deducted. It signifies the owner's stake or ownership interest in the business. Essentially, it's the residual claim on a company's assets, reflecting what would remain for the owner(s) if all debts were settled and assets liquidated. Owner's equity serves as a measure of the business's financial health and the value attributable to the owner's investment. It encompasses retained earnings, investments made by the owner(s), and any other contributions or withdrawals affecting the company's capital structure.