That's sole proprietorship or partnership vs a publicly traded company.
There are a number of examples on Wall Street, e.g. Goldman Sachs, where when they were partnerships, the partners were personally liable for company losses and the firm provably was taking fewer risks than once it became a publicly traded company. The organizational make up of a company can affect the distribution of liability, and that can lead to the company making different choices than it otherwise would.
There are a number of examples on Wall Street, e.g. Goldman Sachs, where when they were partnerships, the partners were personally liable for company losses and the firm provably was taking fewer risks than once it became a publicly traded company. The organizational make up of a company can affect the distribution of liability, and that can lead to the company making different choices than it otherwise would.