Concept:Ordinary shares represent the ownership interest in a company.
Explanation:Ordinary shares are also called common shares or equity shares.
They form part of the owners' capital in a business.
Shareholders who hold ordinary shares have voting rights and can receive dividends.
In accounting, issued ordinary shares appear under shareholders' equity in the statement of financial position.
Equity means the owner's claim on the assets after all liabilities have been deducted.
Net worth refers to total assets minus total liabilities, not the share class itself.
A loan is borrowed money and represents debt, not ownership.
A reserve is profit kept aside, not the share capital.
Therefore, ordinary shares are best described as equity.
Answer:B. equity