What financial term refers to the owner's entitlement to assets after all liabilities have been settled?

The term that refers to the owner's entitlement to assets after all liabilities have been settled is equity. In financial terms, equity represents the residual interest in the assets of a business after deducting liabilities. This means that it is the value that the owners claim in the business once all debts and obligations have been paid off.

For example, if a business has total assets worth $500,000 and total liabilities of $300,000, the equity would be $200,000. This equity can represent ownership in the business, which can be realized through various means such as selling the business or distributing profits among the owners.

Understanding equity is fundamental in finance and accounting, as it reflects the net worth of the business and indicates how much of the company's assets actually belong to the owners.