The corporate characteristic of limited liability is generally more important to the shareholders than the characteristic of centralized management.

Question

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Limited liability protects the shareholders from being personally liable for the debts and obligations of the corporation, which is a more significant factor for many investors. Centralized management refers to the concentration of decision-making power in a few individuals or a group, which may not be as critical to the shareholders as the protection of limited liability.

The Corporate Characteristic of Limited Liability Is Generally More Important