That is the corporation. Their losses are limited to their investments. Moreover, as the company grows, the investments can as well. The company sells percentages of ownership called stock certificates. These may be purchased in as many or as few numbers as the investors wish to put at risk.
Risk is the key.
The more risk, the higher the cost of the money. The lower the risk, the safer your investment, the lower the cost of money, which is interest. So the worse your business plan is, the less you've thoroughly thought out your business, the less likely you will be to attract investors. This typically does not happen in a publicly held corporation, which means that its stock is sold on the open market. Normally, the only time the stockholders get involved with the company business is at the annual stockholders' meeting, and then the involvement is often only attending the meeting.