How did the introduction of limited liability for firms change the focus of firms?
A)Profit became the primary purpose.
B)Social good became the primary purpose.
C)Innovation becamse the primary purpose.
D)The introduction of limited liability did not change firms' focus.

Question

Quizplus · Accepted Answer

The introduction of limited liability for firms allowed owners and shareholders to limit their personal liability for the debts and actions of the company. As a result, profit became the primary purpose for firms, as they were no longer personally responsible for any financial losses or legal liabilities. This incentivized firms to focus on maximizing their profits and shareholder returns.

How Did the Introduction of Limited Liability for Firms Change