Cash equivalents refer to those short term highly liquid security investments such as marketable securities like commercial papers which can be converted into cash within 90 days or 3 months.
Cash equivalents are characterized by their maturity period being 3 months or lesser.
Commercial papers and certificate of deposits maturing in less than 3 months constitute cash equivalents.
Two major characteristics of cash equivalents being, their maturity period being 3 months or lesser and their maturity value is not subject to fluctuations i.e it is known in advance.
Limited liability means the business owners' liability for debts is restricted to the amount they put into the business. With unlimited liability, the business owner is personally responsible for any loss the business makes.
Governance is a systematic way of how power is exercised for effective management of state/country economy and social resources for development of the state. Governance involved establishing policies and complete monitoring of the policies by the government using all legal tools permitted by the constitution of the state/country to seek accurate information and management control of resources in other to deliver good governance for the betterment of the people.
