Here are the complete sentences:
The main purpose is to benefit the PUBLIC, so the directors must consider the impacts of their decisions on society and the ENVIRONMENT. Shareholders have an additional right to private action called a DERIVATIVE SUIT, that allow 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.
Explanation:
A Benefit corporation refers to a type of corporation that is established to create value for both the society and the environment in which it is located. Although, one of the goal of the company is to make profits, it differs from a traditional corporation because, it is main purpose it to add value and provide benefits for those that are connected to it.
Thus, the major purpose of a benefit corporation is to add values to the public and the environment. In order to ensure that this goal is kept in view, the corporation has to publish benefit report every year, in order to show their performance and their adherence to the company goals. The report must be endorsed by a third party in order to show that its contents are true and accurate.
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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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