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What Does It Mean to Say That Shareholders in a Corporation

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What does it mean to say that shareholders in a corporation have limited liability?


Definitions:

Account Receivable

Debts owed by clients to a company for products or services provided on a credit basis.

Cash

Coins, currency (paper money), checks, money orders, and money on deposit that is available for unrestricted withdrawal from banks and other financial institutions.

Internal Control System

A set of procedures and mechanisms implemented by a business to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Cash Receipts

The collection of money, typically in the form of cash or checks, received by a business during its operating activities.

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