Net worth can be a measure of the financial strength of a business or an individual. When you take away your liabilities from the value of assets a company owns, you get its net worth.
For example…
Let’s say Dana’s bridal shop has assets in the form of luxury bridal gowns and other wedding paraphernalia worth two hundred thousand dollars. The liabilities Dana has are a business loan of seventy thousand dollars. The business’s net worth therefore is a hundred and thirty thousand dollars.
