Question

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

Answer 1

Answer: Inflation.

Explanation: When inflation occurs, the purchasing power of money decreases, it is in these economic moments that investing in companies can generate a profitability because, if the company obtains a profit, we will obtain a percentage of it, facing the aforementioned loss of power purchasing and, suddenly, a company´s growth.