What is a TRUE statement about state social benefit or B-corporations? They must
ID: 328971 • Letter: W
Question
What is a TRUE statement about state social benefit or B-corporations?
They must consider the values and interests of other stakeholders beyond the shareholders of the corporation.
They are not allowed to make any profits or pay any dividends to shareholders.
They cannot have a public purpose since corporations are incorporated to do business and make money and not engage in socially responsible activities.
They are now governed by detailed rules promulgated by federal regulatory agencies.
A.They must consider the values and interests of other stakeholders beyond the shareholders of the corporation.
B.They are not allowed to make any profits or pay any dividends to shareholders.
C.They cannot have a public purpose since corporations are incorporated to do business and make money and not engage in socially responsible activities.
D.They are now governed by detailed rules promulgated by federal regulatory agencies.
Explanation / Answer
Answer: OPTION A
Explanation: B-corporations are the companies which are certified to meet various standards of transparency, corporate security, accountability and performance. They are for-profit firms and they work for the welfare of public too. They should consider the values and interests of other stakeholders outside their shareholders.
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