In order to mobilize the funds needed for large-scale enterprises,most European countries enacted limited-liability laws that ensured stockholders could lose only the value of their shares in the event of bankruptcy.

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Limited-liability laws were enacted in most European countries to protect stockholders from losing more than the value of their shares in the event of bankruptcy. This made it easier to mobilize funds for large-scale enterprises as investors were more willing to take risks.

In Order to Mobilize the Funds Needed for Large-Scale Enterprises,most