What is one reason why companies can attract more capital?

The ability of companies to attract more capital is significantly enhanced by offering limited liability to their shareholders. Limited liability means that the personal financial risk of shareholders is restricted to the amount they have invested in the company. This protection provides investors with the confidence that their personal assets will not be at risk in the event of business failure or legal issues.

Having this assurance encourages more individuals to invest, as they are more likely to contribute capital when they know their exposure is limited. This legal structure is particularly appealing to investors because it helps to mitigate risks associated with investing in a business. Consequently, companies that operate under a limited liability structure tend to have greater access to funding through equity investments.

In contrast, the other options present attributes that do not necessarily enhance a company's ability to attract capital. For instance, not being able to operate in international markets can limit growth opportunities and investor confidence, while requiring all shareholders to vote may complicate decision-making and deter potential investors. Lastly, the operating costs of a company, while important, do not fundamentally influence capital attraction in the way that the assurance of limited liability does.