How does the principle of limited liability reduce the financial burden of many company?

How does the principle of limited liability reduce the financial burden of many company?
The principal of limited liability reduces the financial burden of the shareholders which makes the shareholders willing to invest in companies. Assume that you have $1,000,000 to invest and you also have $2,000,000 of other assets including your home and your retirement savings.If you invested the $100,000 in ten businesses that did not have limited liability (for example, a partnership or a sole proprietorship), if any one of those businesses went bust and had outstanding liabilities the creditors of the business could take some or all of the $2,900,000 (your investment in the other businesses plus your other assets) to satisfy the business's debts. This exposure would make people very leery about investing in new businesses. Many people would put their $1.000.000 of investment money in the bank or perhaps make mortgage loans.While there is nothing wrong with safe investments like bank accounts and mortgage loans, unfortunately an economy dependant on bank accounts and mortgages will grow very slowly, if at all. Investments in businesses, not bank accounts and mortgages drive the growth in the economy, create new jobs, generate the revenues that pay the government's taxes, etc. etc. No bank would have lent Bill Gates the money to start MicroSoft or Henry Ford the money to start Ford Motor Company. This is one reason why socialism was doomed to failure, there is no room for innovation in socialism.With limited liability, an investor can make ten $100,000 investments and know that if one goes bust, she will lose the $100,000 she invested in that business but her other assets are still safe.Companies can also use limited liability, if a company is considering a risky investment, they might set up a subsidiary (a company that they own) and run the new business in the subsidiary. That way if the new business bombs, they will lose what they invested in it but the other assets of the company will be safe and they will be able to continue their existing business.