The Difference Between an L3C and Other Types of Businesses

question 23

Multiple Choice

The difference between an L3C 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:

Market Value

The current price at which an asset or service can be bought or sold in a public market.

Historical Cost

The original financial value of an asset or investment at the time of its acquisition.

GAAP

The set of accounting principles, standards, and procedures that companies use to compile their financial statements. GAAP is used to ensure consistency and comparability across organizations.

Debt-For-Debt

A restructuring process where a company replaces or swaps one form of debt with another, like changing the terms or the type of loan.