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This is easy - because of limited liability. Technically owners aren't on the hook for losses, LLC structures and LLC-like structures (C-corps) limit the loss
by ryanobjc 8y ago
This is easy - because of limited liability.
Technically owners aren't on the hook for losses, LLC structures and LLC-like structures (C-corps) limit the loss possible.
They are only risking what they put up - presuming they don't break the law - and nothing more.
Another system would penalize investors and owners of companies for all potentially likely damages downstream of their activities.
Before you argue the world is like this, let me just ask you why do superfund sites exist then? Because of limited liability.
- vonmoltke 8y ago> Before you argue the world is like this, let me just ask you why do superfund sites exist then? The vast majority exist because the operations predated environmental regulations. Also, a significant number are a result of government activities at various levels.
- ryanobjc 8y ago... and the original organizations aren't held liable for the sites. In many cases the companies aren't around, but the investors, and the investor's estates are. The point being that LLC has shielded people from the consequences of their actions.