The characteristic of limited liability enables corporations to

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Limited liability means that individual shareholders are not personally responsible for the debts and obligations of the corporation. This reduces the financial risk for shareholders and makes it easier for the corporation to attract investors, thereby enabling it to raise large amounts of financial capital. Limited liability also means that the corporation can continue to exist even when individual shareholders die or sell their shares. However, it does not necessarily help the corporation avoid taxes or make it easier to start up and dissolve.

The Characteristic of Limited Liability Enables Corporations to