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A metric could drive inappropriate behavior.
Capital Balance
The amount of equity a partner has in a partnership or an owner has in a business, reflecting the net value of their investment.
Deficiency
The debit balance in the owner’s equity account of a partner.
Absorbed
Pertains to costs that have been taken into account or integrated into the pricing of products or services, often in relation to overheads or other indirect expenses.
Share of Losses
An accounting term referring to the proportion of losses allocated to an entity in a partnership or joint venture.
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