A common way to operate a business worldwide is by creating a corporation. This is a separate legal entity to the owners (called shareholders), but is recognized worldwide. Corporations are often referred to as companies, and the two terms will be used interchangeably. One of the major advantages of a corporation is that, except in the case of negligence on the part of the owners, the liability of the company is limited to the amounts of money that the owners invested into the company. This is where the concept of a “limited” company comes from. In Israel, all limited companies are