Claims against the assets of a business firm can come from:
Owners – called Capital / Owners’ Equity
Creditors / outsiders – called Outsiders’ Equity / Liabilities
Therefore, claims by outsiders (like creditors, suppliers, banks) on the firm’s assets are referred to as Outsiders’ Equity.
Other options:
Owners’ Equity / Capital: Claim of owners, not outsiders.
Total Equity: Sum of owners’ and outsiders’ claims (not specific).
