answersLogoWhite

0


Best Answer

An individual will consider that he is treated fairly if he perceives the ratio of his inputs to his outcomes to be equivalent to those around him. Thus, all else being equal, it would be acceptable for a more senior colleague to receive higher compensation, since the value of his experience (an input) is higher. Example: If you own a home that's worth $60,000, but you only owe $30,000 on the mortgage, your equity is $30,000. If you owe $40,000 on the mortgage, then your equity is $20,000.

User Avatar

Wiki User

16y ago
This answer is:
User Avatar
More answers
User Avatar

Wiki User

13y ago

Equity means even-handedness and justice.

In English judicial history it means a body of law developed by the Courts of Chancery which modified the law with a view to making it fairer. The same legal issue might have an answer according to Law and another according to Equity, which the judges arranged to coexist.

In mortgage law it means the value of a property less the amount of mortgage debt secured against it. In English law, defaulting on a mortgage meant the forfeiture of the property no matter how small the debt secured, but Equity said that the property owner should have every opportunity to recover his interest in the property.

This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is the definition of 'equity'?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is the relationship between brand loyalty and brand equity?

Definition of brand loyalty definition of brand equity measurement of brand equity and brand loyalty relationship between brand equity and brand loyalty


Where can a person find an explanation detailing the definition of return on equity?

The definition of return on equity is the amount of net income returned as a percentage of shareholders equity. More information can be found at Investopedia and Wikipedia.


What is the definition of injustice'?

Unfairness, or a lack of equity.


Definition of accounting equation?

Assets = Liabilities + Equity


What is an equity interest definition in science?

An equity interest definition in science refers to a proportion of ownership, typically via investment in a business. Stocks are also known as equities.


What is a good definition of economic equity?

Economic equity is the concept of fairness in economics, especially concerning taxation or welfare.


Definition of contra equity?

Contra Equity refers to an equity account with a normal debit balance, where as other standard equity accounts have normal credit balances. Expense accounts are contra equity accounts because they are used to find totals for a debit of the owner's equity account.


What is Accounting definition of equity?

Equity = Assets -Liabilities Equity is also referred to as the first loss when earnings are depleted. Equity = Common Stock (at Par) + Paid in capital + Pref. Stock + R/E (NI)


What is the financial formula to determine equity multipliers?

The definition of "equity multiplier" is the measure of financial leverage and shows a company's total assets per dollar of stakeholder's equity. It is calculated as: Total Assets divided by Total Stockholder's Equity.


Deffnation of equity?

The definition of equity is the quality of being fair and impartial. There is also the value of the shares issued by a company, if you are looking on the business side.


What's the definition of equity home interest loan?

A home equity loan is a loan that uses ones equity for money. Home equity loans have fixed intrest rates that assure consistent payments within a certain payment period.


What is the Definition of global equity?

Global equity is investing in a company that sells its products around the globe. Sony, Canon, and Toyota are three prime examples.