Limited Liability through the Lens of Expected Value Analysis’
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| Publication date | 2025 |
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| Book title | Uncovering European Private Law |
| Book subtitle | a student handbook |
| ISBN |
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| ISBN (electronic) |
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| Chapter | 8 |
| Pages (from-to) | 155-170 |
| Number of pages | 16 |
| Publisher | Cambridge: OpenBook Publishers |
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| Abstract | The aim of this chapter is to illustrate how limited liability rules enable the transfer of risks and costs away from the shareholders of a corporation to other parties, such as creditors. We illustrate this inherent feature of limited liability by applying expected value analysis, a simple and intuitive analytical framework, to two stylised numerical examples. Subsequently, we briefly discuss several legal strategies that seek to address the externalisation of risks and costs through the corporate form. |
| Document type | Chapter |
| Language | English |
| Published at | https://doi.org/10.11647/OBP.0448.08 |
| Downloads |
obp.0448.08
(Final published version)
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