Question

Benefit corporations differ from traditional corporations in three main ways. The main purpose is to benefit the ___ , so directors must consider the impact of their decisions on society and the ___ . Shareholders have an additional right of private action, called a ___ , that allows them to sue the corporation for failure to pursue the purpose. Finally, benefit corporations must issue an annual ___on its performance and include a third-party standard of assessment.Fill in the blanks with words that would best complete the passage.a. publicb. environmentc. benefit enforcement proceedingd. financial statemente. benefit reportf. shareholdersg. IRSh. derivative suit

Answer 1

Benefit corporations differ from traditional corporations in three main ways. The main purpose is to benefit the public , so directors must consider the impact of their decisions on society and the environment. Shareholders have an additional right of private action, called a benefit enforcement proceeding , that allows them to sue the corporation for failure to pursue the purpose. Finally, benefit corporations must issue an annual benefit report on its performance and include a third-party standard of assessment.

Step-by-step explanation:

For-profit organizations whose aim is to benefit the public as a whole rather than the limit number of shareholders are known as Benefit corporations . The company takes a view of a larger picture when making decisions because the directors of the company consider the impact of their actions on the environment, public, and society as a whole.

Therefore, shareholders through benefit enforcement proceeding can enforce the corporation to pursue the stated objectives.