Define the Term "Limited Liability" and State Why You Think

question 101

Essay

Define the term "limited liability" and state why you think it is an important feature of the corporate form of organization.

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Definitions:

Cash Customer

A customer who pays for goods or services with cash at the time of purchase rather than buying on credit.

General Journal

A primary accounting record used to record all types of transactions before they are transferred to specific accounts in the general ledger.

Sales Tax

A government-imposed tax on the sale of goods and services, collected by the retailer and passed on to the government.

General Journal

A primary accounting record used to record all types of transactions before they are posted to the specific accounts in the ledger.