Because of their __________ liability, corporate stockholders are more concerned with __________.

Question

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Corporate stockholders have limited liability, meaning that they can only lose the amount of money invested in the corporation. Therefore, they are more concerned with the success of the corporation than its failure. If the corporation fails, they will only lose their investment, but if it succeeds, they may gain significant profits.

Because of Their __________ Liability, Corporate Stockholders Are More Concerned