Which of the Following Statements Regarding Benefit Corporations Is True

question 3

Multiple Choice

Which of the following statements regarding Benefit Corporations is true?

• A) Benefit corporations are required to identify one or more specific benefit purposes.
• B) Directors of benefit corporations are protected from all lawsuits from both shareholders and beneficiaries of the corporation's public benefit purpose.
• C) Benefit corporations are incorporated under state law with the intent to be profitable.
• D) All of these statements regarding benefit corporations are true.

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of consumers increases, in contrast to a normal good.

Law Of Demand

A fundamental principle stating that, all else being equal, as the price of a product decreases, the quantity demanded increases, and vice versa.

Price Falls

A decrease in the cost of a good or service in the market.

Quantity Demanded

The total amount of a good that consumers are willing to purchase at a given price level in a market.