Owners Equity:Owners Equity is defined as the proportion of the total value of a companys assets that can be claimed by its owners (sole proprietorship or partnership) and by its shareholders (if it is a corporation). It is calculated by deducting all liabilities from the total value of an asset (Equity = Assets “ Liabilities). The liabilities represent the amount owed by the owner to lenders, creditors, investors, and other individuals or institutions who contributed to the purchase of the asset. The only difference between the owners equity and shareholders equity is whether the business is tightly held (Owners) or widely held (Shareholder). Owners equity can be calculated by summing all the business assets (property, plant and equipment, inventory, retained earnings, and capital goods) and deducting all the liabilities (debts, wages, and salaries, loans, creditors). The owner's equity stands for total assets - total liabilities.