Question

Which best explains how the invention of corporations contributed to the economy in the 1800s?

O Corporations allowed investors to invest without putting their personal property at risk, fueling the growth of new
businesses.
Corporations enabled factories to hire large numbers of unskilled workers who worked long hours for low wages.
O Corporations changed how goods were made, bringing in innovations such as mass production.
O Corporations suppressed the development of an industrial economy in the Southern states.

Answer 1

The invention of corporations spurred economic growth in the 1800s by providing limited liability to investors, leading to increased investment and industrial growth.

Step-by-step explanation:

The invention of corporations significantly contributed to economic growth in the 1800s by allowing investors to participate in new ventures without risking their personal assets. This business structure offered limited liability, meaning that if a corporation went bankrupt or faced legal issues, investors would only lose their initial investment, not more.

This financial security encouraged more people to invest, which in turn provided the capital necessary for industrial growth and the establishment of new industries. By pooling resources from multiple investors, corporations could scale up operations, control entire production cycles, and employ large numbers of workers in factories, fueling the shift to an urban, industrial economy.

Answer 2

Corporations allowed investors to invest without putting their personal property at risk, fueling the growth of new businesses.

Step-by-step explanation: