In non-free-market societies, corporations are characteristically granted "limited liability": that is, their stockholders are given immunity from repaying any debts or losses in excess of the corporation's assets in the event of bankruptcy. Such limited liability, at least in the broad sense in which it is currently construed, is incompatible with the free-market concept developed above and would not be enjoyed in such a system. A free-market corporation could, of course, insist that a limited-liability rider be included in any contracts it made with its creditors and/or customers. On the other hand, participants in such a corporation, including its stockholders, could not disclaim responsibility for the impact of its actions upon other parties—for instance, persons damaged by pollution caused by the corporation's activities. Any such evasion of responsibility would constitute an initiation of force against such parties and would therefore not be permitted (cf. pp. 4.5:8 ff.).

For this reason, among others, one might reasonably expect that corporate culture in a free-market society would differ considerably from that with which we are familiar in the United States.