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Net Worth


Assets minus liabilities of a company or individual. Here, assets include cash. Also referred to as shareholders' equity.

The total of all assets minus the total liabilities of an individual or company. Assets can include property, vehicles, or investments whereas liabilities are debts such as mortgages and credit card bills.

Example:

>Net worth in a family where the principal income earner has a university degree is two and a half times that of a family in which less than a high school education was attained.

 


 

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