Madelaine has figured out how to make an antiwrinkle cream using natur

QUESTION

Madelaine has figured out how to make an antiwrinkle cream using natural ingredients. She buys her ingredients only from fair trade suppliers, and she did not allow her product to be tested on animals.

She has 15 employees to manufacture and sell her product, and she donates 10 percent of her gross sales to local animal shelters. When Madelaine incorporated her company, she became legally required to adhere to certain social practices. What kind of company is Madelaine’s?
A) a B corporation
B) an LLC
C) a C corporation
D) an S corporation
E) a cooperative

ANSWER

Answer: A
Explanation: A) B corporations are legally required to adhere to socially beneficial practices, such as helping communities, employees, consumers, and the environment.