Which of the Following Statements About Benefit Corporations Is True

question 165

Multiple Choice

Which of the following statements about benefit corporations is true?

• A) A benefit corporation is a for-profit organization that has a stated purpose that includes creating a material positive aspect on society.
• B) All 50 U.S. states and the District of Columbia has passed laws allowing mission-based businesses to incorporate as benefit corporations.
• C) Small companies (those with less than 50 employees) cannot incorporate as benefit corporations.
• D) Companies that incorporate as benefit corporations must get B Lab certification.
• E) The primary disadvantage of incorporating as a benefit corporation is the risk of being sued by shareholders.

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Definitions:

Consumer Confidence

A statistical measure that reflects the overall economic health as perceived by consumers, based on their spending and saving habits.

Stock Market

A public marketplace for buying and selling shares of publicly held companies, reflecting the investment climate and economic health.

Housing Construction

The process of building residential structures such as houses, apartments, and townhomes.

Mercantilism

The incorrect theory that a nation’s economic objective should be to accumulate precious metals in the public treasury; this theory prompted trade barriers to cut imports, but other countries retaliated, reducing trade and the gains from specialization.