Let's say an individual takes out a business loan, incorporates (or whatever), hires a team and works awhile. Eventually the venture fails. Is this individual completely on-hook for the millions he borrowed?
On the surface it seems like this is an intuitive "yes!". However, this seems to create a very high barrier for entry (high risk) for new business owners / founders. It seems that if a business idea fails, it can ruin the person. Rather than encourage innovation, this discourages it.
So I wonder how this typically pans out in real life.