What is defined as the value of a business after all obligations have been met?

The value of a business after all obligations have been met is referred to as shareholders equity. Shareholders equity represents the residual interest in the assets of a company after deducting liabilities. In other words, it calculates what is left for the shareholders once all debts and obligations have been fulfilled. This concept is critical in assessing a company’s financial health and value from an investor’s perspective because it indicates the net worth of the business attributable to its owners.

Assets represent everything that the company owns, providing a snapshot of resources but not accounting for the obligations. Liabilities encompass the company's debts and obligations, which subtract from the total asset value. Net income reflects the company's profitability over a specific period and does not account for the overall value once liabilities are deducted. Hence, the choice of shareholders equity is the most accurate and appropriate definition in this context.