1 The Double-Edged Sword of Shareholder Limited Liability in Managing Entrepreneurial Start-Up Ventures: Motivational Benefits Versus Appropriation Losses Richard Makadok Goizueta Business School Emory University 1300 Clifton Road Atlanta, GA 30322 Voice: 404-727-639 Fax: 404-727-6313 E-mail: Rich_Makadok@bus.emory.edu Preliminary Draft November 30, 2009 Acknowledgements: For their helpful comments, suggestions, and discussions, the author would like to thank (alphabetically): Rajshree Agarwal, Maura Belliveau, Ben Campbell, Mason Carpenter, Russ Coff, Bob Drazin, Teppo Felin, Bart Hamilton, Rahul Kapoor, Michael Leiblein, Steve Postrel, Robert Ployhart, David Ross, Frank Rothaermel, Henry Sauermann, Samir Shrivastava, Donald Siegel, Jeroen Swinkels, and Todd Zenger. All remaining errors are my own.