Which of the Following Statements Regarding Benefit Corporations Is True

question 12

Multiple Choice

Which of the following statements regarding Benefit Corporations is true?

• A)Benefit corporations are not concerned with making profit for their shareholders.
• 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:

Excess Funds

Financial resources that exceed the current needs or obligations of a company or individual, available for investment or other purposes.

Short-Term Financial Plan

A financial strategy or planning document that outlines the revenue, expenses, and cash flow for a business over a short period, typically less than one year.

Letter of Credit

A financial document issued by a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount.

Bank Loan

A bank loan is a sum of money borrowed from a bank that must be repaid with interest over a predetermined period.