literature Mainland China English summary

A Study of the Limited Liability System

有限责任制度研究

Treats limited liability as a traditional cornerstone of company law and explains its value in reducing risk, encouraging investment, and lowering transaction and management costs.

Brief English Introduction

This source gives the classic pro-limited-liability account: limited liability encourages investment, shifts and reduces risk, and lowers business transaction costs.

Teaching Notes

Ask students to identify what the article assumes about creditors’ ability to protect themselves.