Which of the following statements is true of benefit corporations?
A) They are the only type of corporation not treated as individuals.
B) They are not treated as taxable entities even though they have shareholders.
C) They are formed through the use of deferred prosecution agreements.
D) They combine the positive aspects of a limited liability company and a partnership to form an organization that is designed to give the maximum profits to the owners of the organization.
E) They combine aspects of non-profit and profit organizations in a way intended to permit a business to make a profit while pursuing explicit, socially oriented goals.

Question

Quizplus · Accepted Answer

Benefit corporations combine aspects of non-profit and profit organizations in a way intended to permit the business to make a profit while pursuing explicit, socially oriented goals. The impetus for creating the benefit corporation structure comes from the perception that traditional corporate forms place too much emphasis on profit maximization.

Which of the Following Statements Is True of Benefit Corporations