The amount owed by the business to the owner.

• A. Partnership
• B. Owner's Equity
• C. Patent
• D. Piracy

Answer: (B)

Ownership stake is being tested here. The owner’s equity represents the owner’s claim to the business’s assets after all debts to outsiders are paid. It’s the value of what the owner actually owns in the company—their residual interest in the assets. That’s why this describes the amount owed to the owner in terms of ownership, not a debt to outsiders. The other terms don’t fit: a partnership is a business form, a patent is an asset, and piracy is illegal copying. On the balance sheet, assets minus liabilities equal owner’s equity, which is the owner’s stake in the business.