For corporate leaders, their firm’s ability to balance shareholder interests with the needs of society must be of paramount importance. Shareholder equity is the phrase used to describe a company's net worth, or the entire amount of money that would be given back to its shareholders in the event that the firm was liquidated after all obligations were settled.
SE is therefore the owners' remaining claim to the assets upon the payment of all debts. A company's entire assets minus its total liabilities equals shareholder equity. Shareholder equity includes retained earnings as well as any money invested in the corporate.
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