Large amounts of investment capital were needed to finance the Industrial Revolution in the United States. During the 1840s, ____ emerged as way for individuals to reduce the risk of the loss of personal wealth when investing in business ventures.

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The principle of limited liability emerged during the 1840s as a way for individuals to reduce the risk of the loss of personal wealth when investing in business ventures. This principle allowed investors to only be responsible for the amount of capital they had invested in a business, rather than being liable for the entire debt of the business. This encouraged more investment in the growing industrial economy.

Large Amounts of Investment Capital Were Needed to Finance the Industrial