What term describes capital that is invested in the business by the owner(s)?

The term that describes capital invested in the business by the owner(s) is equity capital. This form of capital reflects the ownership stake in a company and is generated when owners invest their personal funds into the business. Equity capital is crucial as it provides the necessary resources for a company to grow and operate without the obligation of repayment that is associated with debt capital.

Equity capital allows owners to maintain control over their business, as it does not involve borrowing from external sources. Investors, or owners, can potentially benefit from the success of the business through profits or dividends, as well as the appreciation of their shares in the business.

Understanding equity capital is essential for anyone studying business, as it plays a fundamental role in a company's financial structure and overall health. It also distinguishes how companies manage their funding in contrast to debt capital, which would involve loans and interest repayments, and gives a clearer perspective on the risks and rewards associated with ownership and investment in a business.