I was thinking about this the other day. Just as with joint-stock ownership, legally limiting financial liability redistributes risk (by transferring it to cred

I was thinking about this the other day. Just as with joint-stock ownership, legally limiting financial liability redistributes risk (by transferring it to creditors), but doesn't reduce it in net. Creditors tend to be established firms and bankrupt companies tend to be new, small enterprises, so it seems that limited liability promotes socially beneficial risk-taking by offloading bad outcomes on those who are best able to absorb them. ... "From each according to his ability, ..."