Ed Huntress writes:

But the precipitating idea, and still the fundamental idea
that makes it all possible, is the limitation of liability.

I'd agree that gives it "wheels". But there is more to it, and
corporations as a legal entity would still exist in a hypothetical world
where there was no limited liability.

Knowing they were
liable from the beginning, very few people would ever invest in ANY
corporation.

True, in the sense of small, disconnected investors.

There are many entities which are, in effect if not name, corporations
without limited liability. Lloyd's is one example.

The "limited liability" shield of small business corporations is typically
non-existent. The owner(s) typically have to pledge personal guarantees to
make things liquid. This very common situation makes for a de facto
unlimited-liability corporation, quite the opposite of your assertions.

Enron, Worldcom, Montana Power, and the like, yes, these are abusive
examples of limited liability being exploited to cheat investors. Ask me
how I know. Better yet, don't. It still smarts.