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 became the primary purpose
D)the introduction of limited liability did not change firms' focus

Question

Quizplus · Accepted Answer

The introduction of limited liability reduced the personal risk for individual shareholders and investors. This allowed firms to focus on maximizing profits without the fear of losing personal assets. Therefore, profit became the primary purpose for firms.

How Did the Introduction of Limited Liability for Firms Change