Which of the following statements is true about net worth?
A. A firm's net worth should be higher than the stockholders' equity.
B. A firm's net worth should be equal to 50 percent of the value of the total assets of the firm.
C. A firm's net worth is equal to total assets minus total liabilities.
D. A firm's net worth is the amount that the firm's assets can generate on their liquidation.
E. A firm's net worth is the amount to be paid by the shareholders to the firm on liquidation of the firm.
Answer: C
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