Because of limited liability, individuals are more willing to invest in corporations than in other forms of business.

Question

Quizplus · Accepted Answer

Limited liability means that shareholders are only liable for the debts of the corporation up to the amount they have invested. This reduces risk for individuals, making them more willing to invest in corporations than in other forms of business where they may have unlimited personal liability for the company's debts.

Because of Limited Liability, Individuals Are More Willing to Invest