The Difference Between an L3C (Low Profit Limited Liability Company)

question 5

Multiple Choice

The difference between an L3C (low profit limited liability company) and other types of businesses is that:

• A) L3Cs are chartered by the government and all profits are retained by the government.
• B) L3Cs do not pursue profit, but instead seek social goals.
• C) L3Cs explicitly take on a social mission as well as profit-seeking.
• D) L3Cs cannot accept government funding of any kind.

---

Definitions:

Married Adults

Individuals who are legally united in marriage, facing distinct legal, social, and financial dynamics compared to single adults.

Personal Friends

Individuals with whom one has a close, voluntary, mutual, and personal relationship outside of familial or professional contexts.

Close Relatives

Individuals who are directly related to someone through blood ties or through legal means, such as adoption.

Microstructures

The patterns of relatively intimate social relations formed during face-to-face interaction. Families, friendship circles, and work associations are all examples of microstructures.