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 its performance and include a third-party standard of assessment.

fill in the blanks with words that would best complete the passage.
public
environment
benefit enforcement proceeding
financial statement
benefit report
shareholders
irs
derivative suit

The correct answers are in the right order are public, environment, Derivative suit, and Benefits report

Benefit cooperation refers to profit cooperation and it is committed to improving the society, communicated in which it is located. Benefit cooperation makes profits but also contributes to improving the community or the environment.

Benefit corporations are meant to provide legal cover to companies that are looking to add value to the society in addition to making profits.

The purpose of a traditional corporation is to make profits for its shareholders and their directors are evaluated base on how the company performs financially.

Shareholders can question their directors if divert or send the companies money on would not beneficial to them. In other words, in traditional corporations, the managers cannot make decisions that will sacrifice profit at the expense of the shareholders.

The structures of benefit and traditional cooperation are the same; both corporations have boards of directors, shareholders, and officers. The operations of the corporations are controlled by the officers and directors; they are also answerable to the shareholders, which implies that can be asked to account for their actions.

Benefit corporations make profits and also add value to the society while traditional corporation only makes profits for its shareholders.

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