Question

Legislators created a form of business called corporations because they thought that businesses could be more efficient in raising the capital necessary for producing goods, services, jobs, and wealth if:__________

Answer 1

Individuals were protected by limiting the liability of individuals for business activities.

Step-by-step explanation:

Individuals were protected by limiting the liability of individuals for business activities.

What this means is that when either an individual or a corporation function with limited liability this means that assets belonging to the individuals cannot be seized in an attempt to repay debt obligations attributed to the corporation. Funds that were directly invested with the corporation, such as with the purchase of company stock, are considered assets of the corporation in question and can be seized in the event of issues to be settled.