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.

---

Definitions:

Professional Specialty

A focused area within a profession that an individual has developed expert knowledge and skills in, often requiring specific education and training.

High School Education

A secondary education level that provides foundational knowledge and skills, typically completed by adolescents.

External Environment

The outside factors and influences that can affect an organization's performance, including economic, technological, legal, and socio-cultural elements.

Internal Environment

The elements, circumstances, occasions, and aspects inside an organization that affect its operations and decisions.