How is limited liability viewed by systemaccounting?


Physically, there is no such thing. Limited liability is a legal exception that results in physical absurdity. In the real world, choices are followed by consequences. If the revenue from a choice is to be individually owned, then so must be its expense. Liability refers to who is accountable for risk. If the response to an absence of observability is to use government to force the public's acceptance of the price of ownership of risk, then count on one who is skilled with the measure to restore its ownership to whom it rightfully belongs.

In the end, it is not the role of government to serve as a receptacle for negative externalities,* but to eliminate them—the first of which must be risk.

*Note: Private individuals receiving government exemption as a substitute for the purchase of liability insurance is a government subsidy.

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