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.

Question

Quizplus · Accepted Answer

Benefit corporations are intended to be profitable corporations that are also committed to achieving social and environmental goals. While they prioritize their public benefit purpose, they are still required to make a profit and operate in a financially sustainable manner. Option A is incorrect because benefit corporations are still profit-driven entities. Option B is also incorrect because directors of benefit corporations still have fiduciary duties and may still be subject to lawsuits if they fail to fulfill their duties.

Which of the Following Statements Regarding Benefit Corporations Is True