In the early days of the new monetary system,stockholders were more willing to invest in corporations because of ____________,which limits their financial liability to whatever they invested in the company.

Question

Quizplus · Accepted Answer

The term "limited liability" refers to the legal protection that shareholders have in which their financial liability is limited to the amount they have invested in the company. This provides a sense of security and reduces the risk for investors, making them more willing to invest in corporations. The other answer choices (payment per unit, champagne glass distribution, political arbitrage) are not related to the concept of limited liability.

In the Early Days of the New Monetary System,stockholders Were