Large capital accumulation is facilitated in a corporate form of business because of
A) the separation of ownership and control.
B) the low tax rate on corporate profits.
C) the political power inherent in a large firm.
D) limited liability.
E) the high monopoly profits accruing to corporations.

Question

Quizplus · Accepted Answer

Limited liability means that shareholders are only responsible for the debts of the corporation up to the amount of their investment. This reduces the risk for investors, making it more attractive for them to invest large amounts of capital in the corporation.

Large Capital Accumulation Is Facilitated in a Corporate Form of Business