Asked by Paola Davis on Jun 11, 2024

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A for-profit company with a socially beneficial purpose as its primary objective is called a  low-profit limited liability company (L3C).

Low-profit Limited Liability Company

A classification of LLC that combines the legal and tax flexibility of a traditional LLC, the social benefits of a nonprofit organization, and a commitment to limited profit distribution.

Socially Beneficial

Refers to actions, policies, or practices that have a positive impact on society or the community as a whole.

  • Recognize the concept and operational framework of low-profit limited liability companies (L3Cs) and limited liability partnerships (LLPs).
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HB
Heather BrownJun 14, 2024
Final Answer :
True
Explanation :
An L3C is a hybrid business structure that combines the financial advantages of a for-profit entity with the social benefits of a nonprofit, focusing primarily on achieving a socially beneficial purpose.